French election rally; China stocks plunge; Oil stabilizes

premarket monday
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Stocks are surging after the election in France.

Dow futures are up more than 200 points after a pro-European reformer emerged as the frontrunner to become the next French president. Stocks are rallying across Europe, too.

Here's what you need to know.

1. French election rally: The euro surged 1.2% against the dollar on Monday after Emmanuel Macron topped far-right leader Marine Le Pen in the first round of voting Sunday. They will face off in a second round on May 7.

France's benchmark stock index gained 4% in early trading, led by a strong performance from banking stocks.

The difference between yields on French and German government bonds has narrowed on Monday, another sign that investors are relieved by the result.

2. China stocks tank: Chinese markets suffered their worst fall in three months after regulators reportedly signaled a further clampdown on leveraged trading and "abnormal phenomena" in the country's capital markets.

The benchmark Shanghai Composite Index fell as much as 1.9%, while the smaller tech-heavy Shenzhen Composite closed 2.4% down.

3. Oil prices stabilize: U.S. crude futures have recovered some of the ground lost last week on fears of increased output from American producers.

Oil is now trading near $50.

4. Global market overview: U.S. stock futures were almost 1% higher early Monday.

European markets were having a banner day as investors cheered election results in France. Markets in the U.K., Germany and France were all up between 2% and 4%.

Asian markets ended the session mixed.

The Dow Jones industrial average finished 0.2% lower on Friday, while the S&P 500 was down 0.3% and the Nasdaq shed 0.1%.

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5. Stock market movers -- Bank of America, Jimmy Choo: Shares in Bank of America (BAC) jumped 2% premarket after the bank reported better than expected results on Friday.

Shares in Jimmy Choo surged 6.5% in London after the luxury shoe maker put itself up for sale.

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6. Coming this week:

Monday -- French election reaction; German business climate survey
Tuesday -- U.S. data on new home sales and consumer confidence
Wednesday -- Steve Mnuchin speaks on tax reform; Twitter (TWTR) reports earnings; Crude oil inventories report
Thursday -- Alphabet (GOOGL), Microsoft (MSFT) and Amazon (AMZN) report earnings; ECB meeting; U.S. trade balance data
Friday -- GM (GM) earnings; U.S. and U.K. first quarter GDP data

-- Alec Macfarlane contributed reporting.

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