Market reaction: Global stocks fall on French election surprise

Global stocks fell Monday, with the euro weakening after a surprise election in France. U.S. Treasury yields rose ahead of key inflation data and the start of the corporate earnings season.

Federal Reserve Chairman Jerome Powell’s upcoming appearance before Congress is being eagerly awaited for hints of potential rate cuts. The U.S. consumer price report, due out Thursday, is expected to show a small decline in inflation in June.

Major U.S. banks are set to report second-quarter earnings on Friday, with investors bracing for a continued rally. Wall Street was mixed, with the Dow Jones, S&P 500 and Nasdaq all trading lower.

MSCI’s Global Stocks Index fell, and the euro fell slightly against the dollar. France’s left-wing alliance surprises in parliamentary elections, posing a challenge to market reforms. In the U.S., Treasury yields rose, while commodities such as oil and gold fell as markets adjusted.

(Disclaimer: Based on information obtained from the agency.)