Yesterday, European markets tumbled in the face of growing risks of a pronounced slowdown in the Chinese economy. The new wave of Covid-19 cases sweeping through China, the world's second-largest economy and the largest importer of commodities, is gaining momentum and weighing on global market indexes.

While European markets ended the day lower, Wall Street turned positive on Monday thanks to the tech share rebound. But the trading session was quite volatile, with the Dow Jones losing almost 500 points before bouncing back.

Some key data from Monday’s trading session:

• CAC 40 = -2.00%
• DAX 40 = -1.54%
• EUROSTOXX 50 = -2.15%
• Dow Jones = +0.70%
• Nasdaq = +1.29%
• S&P 500 =  +0.57%
• Oil = around $102.60 a barrel
• Gold = around $1,898 per ounce
• EUR/USD = around 1.0709
• GBP/USD = above 1.2737
• AUD/USD = above 0.7174
• USD/JPY = above 128.07
• USD/CAD = above 1.2730
• Bitcoin = around $40,169

• Ethereum = around $3,008

Emmanuel Macron's reappointment was overshadowed by fears of a slowdown in China and US monetary tightening

On Sunday, Emmanuel Macron won the second round of the French presidential election (58.55% of the vote) against his rival Marine Le Pen. However, the far right party is making gains - winning 41.45% of the vote compared to 33.9% in 2017 - and might cause him trouble over the coming years. The results of the legislative elections next June will be closely monitored to determine how much flexibility the French President will have to implement his programme.

This victory has been overshadowed by worries coming from China. Lockdown measures in several major cities of the country to fight the explosion of Covid-19 infections are expected to reduce overall demand and consumption. These fears have impacted many assets, including oil, which lost about 3% to around $102.69.

Monetary tightening risks, especially in the United States, also weighed on markets. Overnight, the euro erased all its gains following Emmanuel Macron's victory. Market participants are already pricing in 4 consecutive 50 basis point hikes. A possible rate hike by the ECB is also an option as several members of the Governing Council are calling for a quick end to its bond-buying program before starting to tighten its monetary policy later on this summer.

What should you focus on this week?

On Tuesday

• USA - Durable Goods Orders m/m

• USA - CB Consumer Confidence

On Wednesday

• Australia - CPI q/q

• Australia - Trimmed Mean CPI q/q

On Thursday

• Japan - BOJ Outlook Report
• Japan - Monetary Policy Statement
• Japan - BOJ Press Conference
• USA - Advance GDP q/q
• USA - Advance GDP Price Index q/q

• USA - Unemployment Claims

On Friday

• Switzerland - SNB Chairman Jordan Speaks
• Canada - GDP m/m
• USA - Core PCE Price Index m/m
• USA - Revised UoM Consumer Sentiment