A look at the day ahead in European and global markets from Tom

Westbrook

Markets are greeting Britain's first Labour prime minister

since Gordon Brown with a steady hand, which after rollercoaster

years will be a window of opportunity for an economic reset.

Indeed the election landslide, set to deliver Labour under

Keir Starmer a huge majority, was so expected that traders had

welcomed it already as drawing a line under a tumultuous period.

Sterling is the only G10 currency to have gained on

the dollar over the year so far. On a trade-weighted basis

, it is back where it was in 2016, six prime

ministers ago, at the time of the Brexit vote.

The premium investors demand for holding gilts rather than

German 10-year bonds has remained stable around

160 basis points - a far cry from the 230 bps hit during the

mini-budget crisis of 2022.

Futures on the FTSE 100 were up 0.2% in Asia, as

results trickled in and the market has record highs this year,

buoyed by a slow-but-steady economy and decelerating inflation.

Labour's exact plans for growing the economy and for the

exchequer are not known. But for now, at least, policymakers may

proceed against a backdrop of market calm.

The euro was making itself comfortable, too, in

anticipation of France's far right National Rally falling short

of an absolute majority at Sunday's parliamentary runoff -

though the week's 1% gain may be vulnerable to surprises.

Later in the session, which is thinned as many traders make

a long weekend of Thursday's Independence Day holiday, U.S. jobs

data is expected to show a slight cooling in the labour market.

President Joe Biden also appears on ABC News for an interview.

Asian shares rose, sending stock indexes in Japan and Taiwan

to record highs and South Korea's benchmark to a multi-year

peak. Singapore's often somnolent equity market stepped back

after a rally in heavyweight bank stocks had it shooting higher.

Key developments that could influence markets on Friday:

- U.S. non-farm payrolls data

- Joe Biden interview airs