By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica
Investors also look ahead to tax reform news from Trump this
week
U.S. stock-index futures pointed to a sharply higher open on
Monday, while the perceived haven assets like gold, the Japanese
yen and U.S. Treasurys fell, after a strong showing by centrist
Emmanuel Macron averted fears of a euroskeptic-only runoff in the
French presidential election.
Investors were also waiting to hear more about a "massive" U.S.
tax package that President Donald Trump said is coming on
Wednesday, which could revive the so-called "Trump trade" that
started after his election in November, and which came on hopes
that policies seen as pro-growth would swiftly pass Congress.
Dow Jones Industrial Average futures shot up 220 points, or
1.1%, to 20,722, while S&P 500 futures surged 27.60 points, or
1.2%, to 2,375. Nasdaq-100 futures jumped 61.50 points, or 1.1%, to
5,503.5.
Stocks finished modestly lower on Friday
(http://www.marketwatch.com/story/us-stocks-set-for-small-opening-gains-as-french-election-fears-linger-2017-04-21).
But the major markets showed gains for the week: The Dow rose 0.5%,
the S&P 500 advanced 0.9%, and the Nasdaq gained 1.8%, on the
heels of two weeks of declines.
Macron came in first in the first round of the French
presidential voting with 23.9% of the vote, ahead of far-right
euroskeptic candidate Marine Le Pen with 21.4%, and the two will
now face off in the final round May 7. A poll late Sunday from
Ipsos/Sopra Steria showed that Macron would likely win that runoff
by 62% to 38%.
Read:4 things investors need to know about France's presidential
runoff
(http://www.marketwatch.com/story/4-things-investors-need-to-know-about-frances-presidential-runoff-2017-04-23)
Conservative François Fillon and Socialist Benoît Hamon--the
mainstream candidates defeated in the first round--both threw their
support behind Macron. The support is seen as fending off Front
National leader Le Pen, who has called for scrapping the euro and
exiting the European Union, a prospect seen as hugely destabilizing
for the region.
"Her radical views on immigration, the European Union and the
euro should see a solid resistance from the majority of the
population," said Ipek Ozkardeskaya, senior market analyst at LCG,
in a note to clients.
European stocks surged
(http://www.marketwatch.com/story/french-stocks-head-for-2-year-high-after-macron-win-eases-frexit-fears-2017-04-24),
with the French CAC 40 headed for its highest close since January
2008, climbing 4.5%. The Stoxx Europe 600 index leapt 2%, and
Germany's DAX 30 index was up 3%. The euro gained
(http://www.marketwatch.com/story/euro-jumps-to-5-month-high-in-french-election-relief-rally-2017-04-24)
1.2% against the dollar , hovering at five-month highs. The iShares
MSCI France ETF (EWQ) surged 5.5% in premarket trading.
The Nikkei 225 rose nearly 1.4%, as investors backed away from
perceived havens such as the Japanese yen. The dollar shot to over
Yen110 from a level of Yen109 late Friday in New York.
Another haven asset, gold , tumbled $16.60, or 1.3%, to
$1,272.50 an ounce
(http://www.marketwatch.com/story/gold-futures-drop-as-macron-election-win-hits-safety-plays-2017-04-24).
Gold prices climbed Friday amid investor uncertainty ahead of the
French election.
Yields for the 10-year Treasury jumped to 2.29% from 2.23% late
Friday. The closely watched yield premium that investors demand to
hold 10-year French bonds, also known as OATs, over benchmark
German government bonds narrowed to 41.40 basis points
(http://www.marketwatch.com/story/french-bond-spread-narrows-to-4-month-low-as-frexit-fears-abate-2017-04-24)
after widening to around 75 basis points, or 0.75 percentage point,
ahead of the first round.
Anticipating a U.S. tax plan: Trump tweeted on Saturday
(https://twitter.com/realDonaldTrump/status/855817226078879748)
that he would announce a big tax reform package on Wednesday. Wall
Street stocks pared losses on Friday after Trump told the
Associated Press he would unveil a "massive tax cut" package in the
coming week.
Read: Trump's tax reform may rekindle the dying embers of the
stock-market rally
(http://www.marketwatch.com/story/trumps-tax-reform-may-rekindle-the-dying-embers-of-the-stock-market-rally-2017-04-22)
"It could again be a make-or-break outcome for the U.S. markets,
given that Mr. Trump often failed to provide satisfactory details
on his 'massive' plans during his first 100 days at the office,"
said Ozkardeskaya, in a note.
For some, that could be more on the "make" side for stocks.
"There were fears that the recent knockback on healthcare reforms
may have stopped Trump in his tracks, yet this week's announcement
will put the bulls in the driving seat even when the French
feel-good factor has faded," said Joshua Mahony, market analyst at
IG, in a note to clients.
See:This is where the stock market bears will make their last
stand
(http://www.marketwatch.com/story/this-is-where-the-stock-market-bears-will-make-their-last-stand-2017-04-21)
The session brings just one top-tier economic data report, the
Chicago Fed national activity index. As for Federal Reserve
speakers, Minneapolis Fed President Neel Kashkari is set to appear
in a moderated discussion at UCLA Anderson School of Management in
Los Angeles at 11:30 a.m. Eastern. He will then also take part in
moderated discussion at Claremont McKenna College in Los Angeles at
3:15 p.m. Eastern.
Stocks:Hasbro Inc.(HAS) shares surged in premarket trading after
profit and sales surpassed expectations
(http://www.marketwatch.com/story/hasbros-stock-surges-after-profit-and-sales-rise-above-expectations-2017-04-24).
Halliburton Co.(HAL) shares rose after the energy services group
topped earnings estimates. Kimberly-Clark Corp.(KMB) were still to
come ahead of the open on Monday.
Shares of Akari Therapeutics(AKTX) shot up 10% on positive
mid-stage trial data.
Other markets: Oil prices rose 35 cents, or 0.7%, to $49.97 a
barrel, as pressure from supply fears remained
(http://www.marketwatch.com/story/oil-futures-rebound-from-last-weeks-slide-but-supply-pressure-remains-2017-04-24).
Stocks rose across Asia, with the exception of the Shanghai
Composite Index , which fell around 1.4% as investors fretted about
potential government action to cool the markets.
(http://www.marketwatch.com/story/asian-markets-rally-after-french-election-results-2017-04-23)
(END) Dow Jones Newswires
April 24, 2017 08:54 ET (12:54 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.