European stock markets and the euro fell following the advance of far-right parties in European elections and major losses for President Emmanuel Macron’s alliance that prompted him to call a snap election.
Gold futures fell to their lowest level since early April on a stronger-than-expected U.S. jobs report and on news that China halted buying gold for reserves in May, ING said.
The euro fell against the dollar after the European elections but Swissquote Bank said it believed the impact of the political shenanigans would be short-lived, adding a hawkish Fed this week could prove to be harder to shake off.
French government bonds underperformed Bunds as Emmanuel Macron dissolved the National Assembly and called a snap election in France after his centrist alliance was trounced by the far-right National Rally in European elections.
The Biden administration is close to completing a treaty with Saudi Arabia that would commit the U.S. to help defend the Gulf nation as part of a long-shot deal to encourage diplomatic ties between Riyadh and Israel.
