Recession fears continue to weigh on financial markets

Recession concerns amid surging inflation rates and a sharp acceleration of monetary tightening across the globe continued to weigh on financial markets at the end of last week. Overall, US stocks have suffered their heaviest weekly fall since the outbreak of the coronavirus pandemic last week.

Nothing special in the agenda today. US markets are closed for the Juneteeth holiday. European markets should digest the results of the French legislative elections on Sunday. President Macron lost its majority at the National Assembly due to an historical push in the number of elected candidates from far-left and far-right parties. The ruling coalition “Ensemble” is facing an unprecedented political situation that could lead to strong difficulties to enact the announced round of reforms. Suggestions of a dissolution of the National Assembly are already emerging from Macron’s supporters. Watch out for potential impacts on the EURUSD rate and the French 10-year interest rate.