The euro has weakened, the dollar has strengthened, commodity stocks are down three to four percent.
2) The French election produced one big surprise, not from the narrow first-round victory of Francois Hollande, the Socialist candidate, but from the 18 percent showing by National Front head Marine Le Pen, the biggest tally a far-right candidate ever got.
And that may be the best news for Nicolas Sarkozy: He is likely to siphon more votes from Le Pen than Hollande will get, giving Sarkozy at least a chance of victory in the second round.
Regardless: A third of French voters cast ballots for far left or far right candidates (18 percent for Le Pen right party, and 11.1 percent for the left Communist party), with smatterings of votes for smaller parties.
3) Another problem for European austerity: A failed budget deal in the Netherlands appears to have caused the Dutch government to resign. The current coalition was a big backer of the European Union fiscal treaty. The coalition, which includes a smaller populist party, fell apart over how to cut 14 billion to 16 billion euros from the budget in order to get the Dutch deficit with EU targets (a deficit of 3 percent of gross domestic product ). No elections will be held before July, which means another three months of uncertainty. There is also worry the Netherlands may lose its triple-A rating because of the failure to make a deal on the budget.
4) The Bank of Spain said the Spanish economy contracted in the first quarter for a second-straight quarter (official recession ).
1) Earnings season continues, of seven major companies reporting, 4 beat (Xerox, D.R. Horton, Eaton, SunTrust Banks, and Kellogg, but Kellogg lowered full year estimates), one matched (Xerox), and two missed (ConocoPhillips, Hasbro).