All the three major US indices were hovering near the flatline in the afternoon trading, on track to break a 4-day winning streak fueled by prospects of Federal Reserve rate cuts and solid earnings. Investors were uncertain about whether the recent rally can be maintained given the latest economic data while awaiting for Fed speakers for further clues on the interest rate outlook, with the odds for a cut in September currently standing around 67%. On the earnings front, shares of Disney sank more than 9% after the company's revenue slightly missed forecasts and overall Disney+ subscribers came in lower than expected. Conversely, Peloton's stock surged 15.6% following reports that private equity firms are contemplating a buyout of the fitness company. Palantir Technologies plunged over 14%, marking its worst performance since May 2022, after issuing a weaker-than-expected outlook.

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.

The Manheim Used Vehicle Value Index for the US decreased 2.3% month-over-month in April 2024, the biggest decline in six months, following a 0.4% fall in March. The seasonal adjustment magnified the results, but weekly decreases observed during the month were slightly above long-term averages, in a sign depreciation trends are currently tracking higher than long-term averages for the year. Lower prices were recorded for compact cars (-3.9%, luxury (-3.2%), SUVs (-3.1%), midsized cars (-3%) and pickups (-1.3%). Year-on-year, prices of used cars dropped 14%, following a 14.7% slump in March which was the biggest decline since December 2022. Prices were down for compact cars (-17.6%), midsize cars (-16.8%), pickups (-15.2%), SUVs (-14.6%) and luxury (-12.9%).

Retail sales in the Euro Area jumped by 0.8% from the previous month in March of 2024, rebounding from the upwardly revised 0.3% decline from the previous month and ahead of market expectations of a 0.6% increase. It was the sharpest increase in retail activity since September of 2022, pointing to some strength from the European consumer and aligning with other economic data releases that reflect some traction in the bloc’s economy. Sales volumes rose considerably for automotive fuel in specialized stores (2% vs -0.9% in February) and food, drinks, and tobacco (1.2% vs -0.5%), offsetting the stall for non-food products (vs 0.3% in February). From the previous year, retail sales in the Eurozone rose by 0.7% from the revised 0.5% drop in the earlier month, pointing to the first growth in retail since September 2022.

The Halifax House Price Index in the United Kingdom rose by 1.1% year-on-year in April 2024, accelerating from an upwardly revised 0.4% growth in March. Despite higher borrowing costs, home buyers are gaining confidence from relative stability, leading to increased activity and demand, with mortgage applications rising and industry-wide approvals hitting an 18-month high. Moreover, buyers, especially first-timers, are adjusting their expectations, opting for smaller properties to compensate for high-interest rates. However, affordability remains a challenge, as mortgage rates have risen in recent weeks due to anticipation of future changes in the Bank of England base rate, with markets now anticipating a slower rate of cuts. Northern Ireland was the strongest-performing region in the UK (+3.4% yoy), followed by the North West (+3.3%), and Wales (+1.1%). On a monthly basis, there was a 0.1% rise in house prices, following a downwardly revised 0.9% fall in March.