Futures Stronger Overnight Ahead Of Weekend, Cash Earnings Lower Than Expected

In post-Tokyo trade ahead of the weekend, JGB futures were stronger, closing +10 compared to settlement levels, after US tsys finished the week on a richer note following the release of weaker-than-expected US employment data.

• US tsy yields briefly gapped higher in response to mildly higher than expected June jobs gain of +206k vs. +190k est -- but quickly reversed course, extending session lows after prior jobs data was down-revised. Two-month -111k, split evenly over May and April. Private sees surprises lower though, 136k (cons 160k) and a -86k two-month revision skewed slightly to April.
• The NASDAQ and S&P 500 hit fresh all-time highs and closed near the day's peaks.
• France is headed for a hung parliament after the second round of voting as the left New Popular Front (NFP) unexpectedly won the most seats but not enough to have a majority. New elections cannot be held for at least a year and so there is significant political uncertainty. Also, President Macron has significant flexibility in who he chooses as the next prime minister, especially if no party has a majority.
• Labor & Real Cash Earnings print lower than expected at +1.9% y/y and -1.4% y/y respectively versus +2.1% and -1.2% est and +2.1% and -0.7% prior.
• Today, the local calendar will also see BoP Current Account Balance and Bank Lending data.