Futures Slightly Stronger Overnight, US Tsy Futures Re-Open Weaker

In post-Tokyo trade, JGB futures are slightly stronger, closing +6 compared to settlement levels, after US tsy futures re-open weaker after closing early yesterday for the 4^th of July holiday.

• The focus for the markets overnight has been on the UK election. According to exit polls, the main opposition Labour Party is set for a record majority amid a collapse in support for the governing Conservatives (see MNI link). Markets have seen little reaction to the results.
• There was limited economic data overnight to provide the market with direction. German factory orders' unexpected slump in May was the highlight.
• The Euro Stoxx index was up 0.4% as investors await the second round of the French elections on Sunday.
• Looking ahead to US Payrolls due out later today - Nonfarm payrolls are expected to moderate in June after a surprisingly strong May. However, with heightened uncertainty around what is the genuine pace of employment growth, there could be a greater focus on the unemployment rate to assess labour market imbalances - See MNIs Payroll Preview here.
• Japan’s household spending decreased by 1.8% in May from a year earlier, versus expectations for an increase of 0.3%.
• Today, the local calendar will also see Leading & Coincident Indices.