• U.S. job growth rebounded sharply in April and the unemployment rate dropped to 4.4 percent, near a 10-year low, pointing to a tightening labor market that likely seals the case for an interest rate increase next month despite moderate wage growth.
Nonfarm payrolls surged by 211,000 jobs last month after a paltry gain of 79,000 in March, the Labor Department said on Friday. April's job growth, which was broad-based, surpassed this year's monthly average of185,000.
• Emmanuel Macron was elected French president on Sunday with a business-friendly vision of European integration, defeating Marine Le Pen, a far-right nationalist who threatened to take France out of the European Union.
The centrist's emphatic victory, which also smashed the dominance of France’s mainstream parties, will bring huge relief to European allies who had feared another populist upheaval to follow Britain's vote to quit the EU and Donald Trump's election as U.S. president.
With the vast bulk of votes counted, Macron had around 65.5 percent to Le Pen's 34.5 - a gap wider than the 20 or so percentage points that pre-election surveys had suggested.
• The euro firmed and U.S. stock futures hit a record high on Monday after centrist Emmanuel Macron comfortably won the French presidential election. The euro rose to as high as $1.1024 EUR=, its highest in about six months, before stepping back to $1.0998, flat from late U.S. levels last week.
The dollar was steady on the day at 112.79 yen JPY=, after jumping to a seven-week high of 113.14 yen in early trade.
The dollar index, which tracks the U.S. currency against a basket of six major rivals, was slightly higher on the day at 98.673 .DXY, after dipping as low as 98.387 earlier, its lowest since November.
• San Francisco Federal Reserve Bank President John Williams on Saturday reiterated his view that the U.S. central bank should begin trimming its massive balance sheet later this year, in part so the Fed has more tools at the ready when the next recession hits.
He was the fourth Fed official in two days to suggest the Fed may need to restart its controversial bond-buying program to help boost the economy in a future downturn.
• Bank of Japan Governor Haruhiko Kuroda said on Saturday the yen's depreciation against other currencies has not led to an increase in the country's exports in recent years because more companies now produce goods overseas.
• Japanese and Chinese finance ministers agreed on Saturday to enhance cooperation through bilateral dialogue on their economies and policy steps, as U.S. President Donald Trump's protectionist stance and tension over North Korea weigh on Asia's growth outlook.
• Relations with the United States hang in the balance when South Koreans head to the polls at a tumultuous political time to elect a new president Tuesday.
Human rights lawyer Moon Jae-in, 64, the candidate of the left-leaning Democratic Party of Korea, leads polls by a large margin over his nearest competitor, conservative Hong Joon-pyo.
• On Tuesday, South Koreans will choose a new president to replace the one they impeached.
Moon has been critical of the U.S. deployment of an anti-ballistic missile defense system known as THAAD (Terminal High Altitude Area Defense) in South Korea, a military move Park had endorsed. The U.S. began deploying elements of THAAD in late April on an abandoned golf course outside of Seoul and announced it was operational earlier this week.
• Oil prices closed 1.5 percent higher on Friday, rebounding from five-month lows, following positive U.S. jobs data and assurances by Saudi Arabia that Russia is ready to join OPEC in extending supply cuts to reduce a persistent glut.
Brent futures gained 72 cents, or 1.5 percent, to settle at $49.10 a barrel, while U.S. West Texas Intermediate crude climbed 70 cents, or 1.5 percent, to close at $46.22 per barrel.
• The market, however, remained in technically oversold territory with futures trading down as much as 19 percent from highs in mid April, prompting some speculators to exit their long positions.
Reference: Reuters, USA Today, The Washington Post
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