The Euro held up well to the results of the 1st round of legislative elections, with an initial rise of +0.5% to around $1.0770/$, which then evaporated: the Euro ended little changed at around 1.0730 (+0.15%), while the Dollar Index ended perfectly stable this evening at around 105.85.

The day's highlights included a new all-time low for the Yen, which fell to 161.7/$ and 173.65 against the Euro.
The Swiss franc was also weak, falling by -0.55% to 0.9035/$ and by -0.5% against the euro.

The day was marked by a sharp rise in yields on both sides of the Atlantic, but with fairly comparable intensity: our OATs fell by 5pts this evening, but Bunds posted +11.5pts to 2.6030%. The latter are suffering one of their worst declines of the year, while inflation in Germany is expected to come in at +2.2% in June, according to Destatis' preliminary estimate, after +2.4% the previous month.

In France, the PMI HCOB index for French manufacturing industry, produced by S&P Global, fell from 46.4 in May to 45.4 in June, highlighting an acceleration in the sector's contraction compared with the previous month.

Meanwhile, the HCOB PMI index for eurozone manufacturing, produced by S&P Global, fell from 47.3 in May to 45.8 in June, highlighting a sharp deterioration in the sector's economic situation, as well as an acceleration in its contraction (below the technical threshold of 50).
On the US side, the contraction of the US manufacturing sector increased slightly in June, continuing to reflect weak demand.
This is demonstrated by the Institute for Supply Management's survey, in which the index came in at 48.5 last month, down 0.2 points on May's 48.7.

The new orders component improved to 49.3 from 45.4 the previous month, but the production component fell back to 48.5 from 50.2 the previous month.
The employment sub-index also eased to 49.3 from 51.1 in April.
Just prior to the ISM, S&P Global had announced that its manufacturing index had come in at 51.6 for the past month, compared with 51.3 in final figures for May.


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