The results of the first round of French elections sent stocks around the world higher in early trading on Sunday. Emmanuel Macron and Marine Le Pen will advance to the second round of voting on May 7. The preliminary results from the first round show Macron beating Le Pen 23.9% to 21.4%. Early polls show the centrist candidate beating the populist candidate, Le Pen, by 20% in the second round.
The attention will switch back to the U.S. this week as the showdown over a potential government shutdown and funding for building the border wall will make headlines. We are also expecting more details about the framework for tax reform on Wednesday.
Additionally, markets will digest a number of high-level earnings reports and first quarter GDP this week.
The markets are stuck in a fairly tight range as the push and pull between geopolitical uncertainty, full valuations and domestic policy uncertainty keep markets looking for a reason to break out.
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