WTI crude futures fell toward $78 per barrel on Wednesday, heading back to the lowest levels in nearly two months following reports that Russian Deputy Prime Minister Alexander Novak indicated OPEC+ could consider increasing crude production. The group of major producers will meet on June 1 to decide on output policy for the second half of the year. The current supply agreement which removes around 2.2 million barrels per day off the market will expire at the end of June. Elsewhere, industry data showed that US crude inventories increased by 0.509 million barrels last week, defying market expectations for a 1.43 million barrel decline. On the demand side, investors look ahead to the latest Chinese trade figures this week to gauge the economic health of the world’s top crude importer.

The unemployment rate in the Philippines declined to 3.9% in March 2024 from 4.7% in the corresponding month of the previous year. The number of unemployed persons decreased to 2 million from 2.42 million in the corresponding month of the previous year, while employment increased to 49.15 million compared to 48.58 million. Among industry groups, employment grew the most in the wholesale and retail trade; repair of motor vehicles and motorcycles (+963 thousand); manufacturing (+553 thousand); public administration and defense; compulsory social security (+229 thousand); financial and insurance activities (+173 thousand); and administrative and support service activities (+140 thousand). Meanwhile, the labor force participation rate decreased to 65.3% in March 2024 from 66.0% a year earlier.

The Nikkei 225 Index fell 1.1% to around 38,400 while the broader Topix Index lost 0.8% to 2,723 on Wednesday, with Japanese shares retreating from three-week highs as disappointing earning reports from major firms dampened market sentiment. Nintendo dropped 3.7% after forecasting a decline in net profit for the fiscal year starting April on expectations of weaker sales of Switch consoles and software. Sony Group also tumbled 2.4% amid potential regulatory concerns surrounding its bid to acquire Paramount Global. Elsewhere, Toyota Motor and Mitsubishi Motor fell 1.8% and 1%, respectively, ahead of their latest quarterly earnings reports. Investors now look ahead to Japanese wage data on Thursday, as well as the Bank of Japan’s summary of opinions.

US stock futures held steady on Wednesday after the major averages ended mixed in the previous session. In extended trading, Reddit surged about 14% on upbeat first quarter results. Wynn Resorts and Lyft also gained 2% and 6%, respectively, on better-than-expected earnings. In regular trading on Tuesday, the Dow and S&P 500 rose 0.08% and 0.13%, respectively, while the Nasdaq Composite lost 0.1%. Those moves came as investors weighed whether the recent market rally has more legs, while caution dominated sentiment ahead of further central bank commentary. In corporate news, Disney fell 9.5% lower-than-expected revenue and overall Disney+ subscribes. Palantir Technologies also dropped 15.1% after issuing a weaker-than-expected outlook. Meanwhile, Peloton's stock surged 15.5% on news that private equity firms are considering a buyout of the fitness company. Investors now look ahead to more earnings reports on Wednesday.

The yield on the US 10-year Treasury note yield declined to 4.43% on Tuesday, the lowest level since April 9th, as traders focus on prospects the Fed will cut interest rates this year after a softer-than-expected labour data. Traders are closely watching comments from Fed officials for clues on the timing of the first rate cut, with odds for an ease in September currently standing around 68%. On Monday, Richmond Federal Reserve President Thomas Barkin said that ending the battle against inflation will likely require a hit to demand and Federal Reserve Bank of New York President John Williams said eventually there will be rate cuts but for now monetary policy is in a "very good place". At the same time, attention will also be on this week's Treasury auction, which includes $125 billion of three-, ten- and thirty-year bonds.

The Ivey Purchasing Managers Index in Canada surged to 63 in April 2024 from 57.5 in March, surpassing expectations of 58.1 and reaching its highest level in two years. It was the ninth consecutive monthly increase. Notably, the prices index rose to the highest level since December (62.4 vs 57.9 in March) and employment improved further (56.4 vs 55.4). However, metrics for the inventories index (52.8 vs 55.6) and supplier deliveries (49.6 vs 52.1) experienced declines. Also, the unadjusted PMI rose to 65.7 from 63.