Thanks for joining us. French stock markets and broader European markets are expected to rise in the coming days following the election results in Europe’s second-largest economy.

According to Morgan Stanley strategists, both a split parliamentary majority and a majority at the National Rally would likely lead to a “relief rally” after the sharp decline that occurred after Emmanuel Macron called the vote last month.

5 things to start your day with

1) Royal Mail faces mounting debt burden after takeover by ‘Czech Sphinx’ | The risk of borrowing costs tripling in a takeover is a result of the billions in financing provided

2) How Italy shook off its ‘basket case’ brand – and stole Britain’s millionaires | Meloni’s Milan is set to replace London as playground for the rich

3) Jim Ratcliffe postpones launch of electric SUV | Ineos cites weak demand for electric vehicles as it puts car production on hold

4) BMW attacks EU tariffs on Chinese electric car imports | Criticism stems from fear of equal treatment by Beijing on German exports

5) Matthew Lynn: The moral bankruptcy of home workers will push Britain to the brink of collapse | Greece’s addition of a sixth working day shows that countries can change their fate

What happened at night

Asian stocks hit a 27-month high as weaker-than-expected employment figures reduced the likelihood of a US rate cut in September.

Independence Day in the United States saw thin trading as investors awaited the outcome of the British election.

Across the Channel, polls suggested the Rassemblement National (RN) would fall short of winning a majority of seats in Sunday’s French election as the established parties blocked its far-right wing.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9%, reaching its highest level since April 2022.

Japan’s Nikkei rose 0.9 percent to near a March high, while the broader Topix hit new record highs.

Taiwan’s main index also hit a record, led by the technology sector and Taiwan Semiconductor Manufacturing Co (TSMC), which topped T$1,000 for the first time.

On Wall Street, the S&P 500 rose 0.5% to 5,537.02, marking the second straight day and the 33rd time this year that it reached a record high.

The Dow Jones Industrial Average fell 0.1% to 39,308.00, while the Nasdaq Composite added 0.9% to its previous record high to close at 18,188.30. Trading ended early ahead of the July 4 holiday.

The yield on the US 10-year Treasury note fell from 4.44% to 4.35% on Tuesday evening. This is a remarkable move for the bond market. Much of the decline was caused by a report on US service companies.