Oil prices gained on strong summer fuel demand and potential supply disruptions from Gulf of Mexico hurricanes
Asian stocks inched higher on Monday as investors grew more confident about a September US rate cut, while the euro grappled with political uncertainty as French elections pointed to a hung parliament.
In France, a leftist alliance unexpectedly took top spot ahead of the far right, a major upset that was set to prevent Marine Le Pen’s National Rally (RN) from running the government.
The loss of the far right was something of a relief for investors, though they also have concerns the left’s plans could unwind many of President Emmanuel Macron’s pro-market reforms.
« It will be difficult for France to form a government and as the most likely potential outcome is now some arrangement between parts of the left and Macron », said Holger Schmiedling, chief economist at Berenberg.
« This could mean some reform reversals rather than further reforms. The outcome I would say is less bad than could have been the case. It could have been much worse. »
The single currency dipped a fraction in reaction to $1.
