French politics were thrown into turmoil after Prime Minister François Bayrou lost a no-confidence vote by 364 to 194, forcing President Emmanuel Macron to either appoint his fifth prime minister in less than two years or call snap elections if coalition talks fail.
Commodities gained, with iron ore up 1.9% in Singapore to $107.40, while gold surged 1.4% to $3,636, breaking through its inflation-adjusted peak from 1980. The move, driven largely by global central bank demand, underscores waning trust in U.S. Treasuries.
In banking, Italy’s Monte dei Paschi di Siena closed its long-anticipated acquisition of Mediobanca, boosting its stake to 63%. Meanwhile, the Dutch government said it will cut its holding in ABN Amro to 20%, continuing its gradual exit from the lender.
On Wall Street, U.S. equities advanced, with the Nasdaq closing at a record 21,798.70, up 0.45%, while Treasury yields extended declines on expectations of imminent Fed easing. Investors now turn to a key payroll revision due today and Thursday’s CPI inflation release, which will be critical in shaping the Fed’s next steps.