The Unio Weekly View 17.06.2024

Welcome to the Unio Weekly View for the week beginning 17 June 2024.

In summary:

- Last week, French President Macron called a snap parliamentary election, leading to the biggest weekly drop in French stocks since 2022, as fears of a far-right majority gain momentum. Banks were heavily sold off, with higher inflation and a rate cut also hurting the sector.

- This week, attention shifts to the UK as the general election approaches. Labour, led by Keir Starmer, holds a strong lead at 42% in the polls. May inflation data, to be released on the 19th, currently stands at 2.3%. A lower figure may bolster the Conservatives and PM Sunak but is unlikely to significantly sway voters. It might influence the Bank of England’s rate decision on the 20th, with the current rate at 5.25%.

- Companies to watch this week include Mastercard and Toyota Motor Corp, who hold their AGMs on the 18th, and Accenture plc reports Q3 2024 earnings on the 20th. Falling interest rates may shape Mastercard’s outlook, while EU tariffs on Chinese EVs could benefit Toyota’s EV market.

View our full investment brief

At Unio Employee Benefits, we are happy to work with our clients to help provide solutions to help bridge these potential gaps for their scheme members. Contact your client manager directly or get in touch at enquiries@unio.ie