Sujata Ro shows us a glimpse at tomorrow’s markets.

We can all breathe a collective sigh relief at France’s re-election of Emmanuel Macron, a pro-business politician rather than Marine Le Pen, her far-right rival. Markets aren’t exactly jubilant.

Because the French election was so last week. It’s now being overshadowed by concerns for the international economy. Following the IMF meeting, in which central bankers vowed hawkish messages to their counterparts, there are concerns that policy screws may be tightened so that growth slows down.

China is also a concern. Shanghai, which has been locked down for the fourth time in a week now, and Beijing appear set for the same fate. The dollar has dropped to an all-time low of $1.01, while the Chinese and Hong Kong share prices are at a record low of 4%.

The 10-year Treasury yields are down by more than 8 percentage points, which is sparking an urge to safety.

European shares are trading at 1% to 1% lower than their counterparts in France. Futures indicate similar weakness on Wall Street. The worst month for world stocks since March 2020 is actually upon us.

While the euro is far from basking in the sunshine, it’s down 0.7%. The dollar continues to flex its muscles as it gains on expectations that the U.S. Fed Funds Rate — which currently stands at 0.33% — will reach 3% next February.

Reuters has been informed by sources from the ECB about possible interest rate increases as early as July.

These losses can be seen in emerging markets as well as commodities. Oil is now below $100/barrel while and, the most popular growth gauge, have fallen to one-month lows.

The market expects a further drop in German business morale after the IFO survey is released later today. Keep in mind that the indicator plunged in March. The forward-looking portion was particularly hard hit. This is the end of any relief.

These are the key developments which should give more direction to the markets Monday

The supply chain problem causes a third of -Philips Q1 core profit to plummet

BBVA in Spain increases Turkish Garanti offers by 23%

CBI UK Business Optimism Q2

Central Banks in Kazakhstan and Kyrgyzstan

Earnings from the U.S.: Coca Cola Pepsico (NASDAQ:), Whirlpool 

-European earnings:  Roche, Philips,  Evolution Gaming, Vivendi (OTC:), JD (NASDAQ:) Sports, Taylor Wimpey (LON :), Santander(BME :), Orange (OTC :), Associated British Foodss (OTC :), Novartis and Alfa Laval