1. French election relief: France has chosen centrist reformer Emmanuel Macron as its next president.
Macron wants to keep France at the heart of the European Union. His defeated far-right rival, Marine Le Pen, offered a very different vision: She campaigned on a promise to drop the euro and had threatened to pull France out of the EU.
The euro edged up 0.2% to above $1.10 in early Asia trading, its highest level since November. It slipped back a little in European trade on Monday.
French stocks dipped slightly in early trading.
Despite the sweeping victory, Macron still needs to win over the French parliament in order to push ahead with economic reforms.
He will also need to reconcile his vision for the future of the eurozone with that of France’s biggest ally, Germany.
2. China trade data: Data published Monday showed slower trade growth in China, with exports growing by 14% in April over the previous year. That compares to a 22% growth rate in March. Imports grew by 18.6% in April over the previous year, down from 26.3% in March.
Chinese foreign currency reserves data for April showed an uptick in capital leaving the country.
“Looking ahead, we think that capital outflows could pick up further in the coming quarters, particularly if the U.S. dollar starts to strengthen again,” said Julian Evans-Pritchard of Capital Economics.
3. Global market overview: U.S. stock futures were lower early on Monday.
European markets were mostly weaker. Asian markets finished the session mixed.
The Dow Jones industrial average closed 0.3% higher on Friday, while the S&P 500 and the Nasdaq were both up 0.4%.
4. Stock market movers — Berkshire Hathaway: Berkshire Hathaway shares were lower in extended trading following its annual meeting on Saturday. Warren Buffett shared his thoughts on IBM, Apple and Unilever at the gathering, dubbed the Woodstock of Capitalism.
5. Economics: Comstock will release its earnings before the bell. AMC Entertainment, Marriott and Sturm Ruger will follow after the markets close.
6. Coming this week:
Monday — Chinese trade balance data; Comstock, AMC, Marriott earnings
Tuesday — News Corp., Walt Disney, Priceline and Softbank earnings; South Korea election
Wednesday — Snapchat, 21st Century Fox, Wendy’s, Toyota, Whole Foods earnings; Crude oil inventories report; Chinese inflation data
Thursday — Kohl’s and Macy’s earnings; G7 summit; EU economic forecast; Bank of England rate decision
Friday — U.S. inflation data; JCPenney earnings; U.S. retail sales report; G7 summit day 2
