Australia's Westpac-Melbourne Institute Consumer Sentiment index fell 0.3% mom to 82.4 in May 2024, slowing from a 2.4% decline in the prior month. It was the third straight month of drop but the softest pace in the sequence, amid signs that inflation may return to the 2–3% target range over a reasonable time. The latest result came after Treasurer Jim Chalmers announced the annual fiscal budget focusing on boosting employment and mitigating the cost-of-living pressures.

US stock futures held steady on Tuesday after the tech-heavy Nasdaq Composite notched another record close in the previous session. In extended trading, Palo Alto Networks fell more than 8% as the cybersecurity firm’s forward guidance failed to excite investors. In regular trading on Monday, the Nasdaq Composite gained 0.65%, helped by a 2.5% jump in Nvidia ahead of its earnings report. The S&P 500 also edged up 0.1%, while the Dow lost 0.5% as JPMorgan dropped 4.5% after CEO Jamie Dimon said his retirement could come sooner than expected. Elsewhere, Target shares slid 2.1% after the retailer announced it would cut prices on roughly 5,000 frequently bought items to attract cost-conscious consumers. Meanwhile, investors are looking for additional hints about the timing of the Fed's interest rate cuts, with several Fed officials scheduled to speak and the latest FOMC minutes being released this week.

Gold surged to $2,440 an ounce on Monday, reaching a new record, driven by growing optimism that the Federal Reserve will soon cut interest rates and heightened demand for safe-haven assets amid the potential escalation of geopolitical tensions. Iranian President Ebrahim Raisi was killed in a helicopter crash, raising political uncertainty in the Middle East. At the same time, Saudi Crown Prince Mohammed bin Salman postponed a trip to Japan over King Salman's health. Last week, data showing signs of slowing US consumer inflation and stalling retail sales, gave the Fed more leeway to initiate monetary easing. Markets are already betting that the first-rate reduction will occur in September. Investors will take more cues from several Fed officials due to speak this week. Additionally, strong central bank buying, particularly by China, seeking to reduce its dependence on the US dollar, further supported the trend.

The yield on the US 10-year Treasury note yield rose to 4.45% after hitting a one-month low of 4.33% last week, as traders re-evaluate their expectations for interest rate cuts. Appearances from several Fed officials and the release of FOMC minutes this week should provide further insights into the Fed's future plans. Atlanta Fed President Bostic made the first remarks, and said that he thinks "that our new steady state is likely to be higher than what people have known over the last decade- maybe back to where we were in the 1990s and 2000s". He also said that "nothing has changed" concerning his belief that only one interest rate reduction will be warranted in 2024. Also, Fed Vice Chair for Supervision Barr said the central bank should hold interest rates steady, adding policy needs more time to bring inflation down to target. The likelihood of a rate reduction in September currently sits at 62%, slightly below 64% early in the day, while November is at 74%, compared to 77%.

Chile's economy advanced by 2.3% year-on-year in Q1 2024, much faster than a 0.4% rise in the previous three-month period and compared to market estimates of a 2.5% growth. This was the strongest expansion since Q2 2022, as the expansion of domestic demand was accompanied by an increase in net exports. Within domestic demand, both investment and consumption rose. Investment (+4.7%) was influenced by a greater variation in inventories, which reached an accumulated ratio over twelve months of -0.3% of GDP. In contrast, gross fixed capital formation shrank by 6.1%, particularly in its machinery and equipment component. Meanwhile, household consumption saw a variation of 0.6% and government spending rose by 4.3%. On the external front, exports of goods and services rose by 3.2%, while imports increased by 1.6%. On a seasonally adjusted quarterly basis, Chile's GDP surged by 1.9% in Q1, up from a mild 0.1% growth in Q4 2023 and almost in line with market forecasts of a 2% rise.

US natural gas futures surged past $2.65/MMBtu, hitting a four-month high and extending last week's 16.6% increase, fueled by decreased production and rising demand. Weather forecasts are predicting warmer temperatures until May 31, prompting a surge in gas consumption as power generators gear up to meet the increased electricity demand for air conditioning. Additionally, gas flows to major US LNG export facilities are on the rise, notably with the return to service of the Freeport plant. On the supply side, US gas production has seen a 10% decline in 2024 due to various energy companies, such as EQT and Chesapeake Energy, delaying well completions and scaling back drilling operations. Despite these factors driving up prices, the most recent EIA report showed that US gas inventories sit at 30.8% above the 5-year average.