Politics

Highlights:

A Macron 'win' in the first round of the French elections has (judging by the initial reactions) allayed many fears of imminent doom. Dow futures are up around 200 points, Bond futures are down, gold is down (despite USD weakness)...

Stocks back at 3-week highs as gold sinks...

EURUSD is clinging to 1.09 as Treasury prices drop...

However, as Bloomberg's Cameron "macroman" Crise notes, "Enjoy the party, parkets; but beware of the bangover."

While the world is focused on the outcome of the first round of the French election, which is playing out much as the market had largely anticipated with Macron and Le Pen set to face each other in the runoff round, the North Korea threat remains, and according to Reuters, Donald Trump will speak on Sunday with Japanese Prime Minister Shinzo Abe and Chinese President Xi Jinping, citing a administration official.

The topic of discussion is expected to be North Korea.

Despite historicaly low approval ratings (before his recent warmongery bounce), nearly all of those who supported him in the November election say it was the right thing to do.

All told, the latest ABC News/Washington Post poll shows that 42 percent of Americans approve of Trump’s performance as president, while 53 percent disapprove. That compares to an average of 69-19 percent for past presidents at or near 100 days in office – for example, 69-26 percent for Trump’s predecessor, Barack Obama.

With events in France developing fast and furious, and with Le Pen either leading (for now) according to official French ministry data, or in second place according to exit polls, Citi's Fraser King asks: "Is this the end of the two-party system in France."

More from Citi:

If results stay as polls suggest, with Le Pen and Macron in the second round, it will be the first time in the history of the ‘fifth’ Republique, that one of France’s two major parties will not be present, marking a monumental change in the French political landscape.