Investing.com - Here are the top five things you need to know in financial markets on Tuesday, April 25:
1. Global stocks, euro extend French election rally
Global stocks and the euro remained in demand on Tuesday as investor sentiment remained skewed toward riskier assets in the wake of Emmanuel Macron's victory in the first round of Sunday's presidential elections in France.
The MSCI World Index, a gauge of global stocks, hit an all-time high for the second straight session.
On Wall Street, U.S. stock market futures pointed to a higher open on Tuesday morning, building on the prior session's 1% gain. The blue-chip Dow futures rose 47 points, or around 0.2%, to 20,801 by 5:35AM ET (09:35GMT), the S&P 500 futures added 3 points, while the tech-heavy Nasdaq 100 futures rose 9 points.
In Europe, stocks touched new multi-year highs in mid-morning trade, with Germany's DAX up around 0.3% to a fresh all-time peak of 12,480, while France's CAC 40, which jumped 4.1% on Monday to its best close in nine years, added 0.3%.
Earlier, Asian equities hit a near two-year high, with Japan's Nikkei closing up about 1%, while the Shanghai Composite in China tacked 0.3%.
In the currency market, the euro was up around 0.3% at 1.0900 against the dollar, not far from Monday’s peak of 1.0918, which was the highest level since November 11. The pair jumped 1.3% on Monday.
The gains came as polls showed pro-Europe Macron easily defeating far-right nationalist Marine Le Pen in a runoff vote due to take place May 7, reducing the risk of an anti-establishment shock in the final round and easing fears over a possible French exit from the euro zone.
2. Dozens of U.S. earnings ahead
U.S. earnings season gathers momentum on Tuesday, with dozens of companies due to report, including Dow components like Caterpillar (NYSE:CAT), Dupont (NYSE:DD), 3M (NYSE:MMM), and McDonald's (NYSE:MCD). There are also reports from Coca-Cola (NYSE:KO), Eli Lilly (NYSE:LLY), AT&T (NYSE:T), Chipotle (NYSE:CMG) and a handful of others.
According to Thomson Reuters, 77% of the S&P 500 companies that have reported thus far have beaten earnings per share estimates. Profit growth for the quarter is also tracking at about 11%, the best quarter since 2011.
On the data front, U.S. consumer confidence is released at 10AM ET (14:00GMT). There is also S&P Case Shiller home prices and FHFA home prices, both at 9AM, and new home sales at 10AM.
3. Oil attempts to break 6-day losing streak
Oil prices were higher on Tuesday, rising for the first time in seven sessions as investors returned to the market to seek cheap valuations after futures fell to the lowest level in four weeks amid signs of further gains in U.S. crude output.
U.S. crude was up 11 cents, or around 0.2%, to $49.35 a barrel in early New York morning trade. The U.S. benchmark settled lower for the sixth session in a row on Monday after hitting its weakest level since March 29 at $49.03.
Brent added 10 cents to $52.23 a barrel after sliding to $51.42 in the prior session, its deepest trough since March 29.
Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of 1.3 million barrels.
Crude has been under heavy selling pressure in recent days amid fears that an ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand.
4. North Korea conducts live fire drill as tensions rise
North Korea stoked geopolitical tensions further after the hermit state conducted a massive live-fire drill on the 85th anniversary of the foundation of its army, media reports said on Tuesday.
U.S. President Donald Trump plans to hold a rare briefing at the White House for the entire U.S. Senate to discuss the situation in North Korea on Wednesday.
All 100 senators have been asked to the White House for the briefing by Secretary of State Rex Tillerson, Secretary of Defense Jim Mattis, Director of National Intelligence Dan Coats and General Joseph Dunford, chairman of the Joint Chiefs of Staff.
Trump called for new UN sanctions against North Korea on Monday and urged the organization to "solve the problem" of North Korea's weapons program.
Regional tensions have risen over the past weeks as the Trump Administration has taken a tough rhetorical line with Pyongyang.
5. U.S. slaps tariffs on Canadian lumber
The U.S. will impose preliminary anti-subsidy duties averaging 20% on imports of Canadian softwood lumber, Commerce Secretary Wilbur Ross said on Monday, escalating a long-running trade dispute between the two neighbors.
The move, which affects some $5.66 billion worth of imports of the construction material, sets a tense tone as the two countries and Mexico prepare to renegotiate the 23-year-old North American Free Trade Agreement.
News of the tariffs sent the U.S. dollar to a four-month high against its Canadian counterpart in early trading, with USD/CAD up 0.5% at 1.3570, a level not seen since December 28.