Stocks in the US finished mixed on Tuesday, following a tech rally in the previous session, as investors await US consumer inflation due Thursday. The Dow Jones slid 157 points, the S&P 500 lost 0.1% while the Nasdaq added roughly 0.1%. Energy and materials sectors led the declines of the session while tech shares ended higher. Nvidia rose 1.7% after reaching a new record high during the session, and Amazon and Alphabet also saw gains of 1.5% each. On the other hand, Tesla lost 2.3% and JetBlue sank 10.2% after BofA Securities downgraded the stock to Underperform from Neutral. Traders continue to adjust their bets for rate cuts while awaiting crucial economic data due later in the week including the CPI and the kick-off of the earnings season. Meanwhile, the NFIB survey showed sentiment among small business owners improved in December but remained pessimistic while the trade deficit came below forecasts as both exports and imports fell 1.9% in November.

WTI crude futures rose more than 2% to above $72.5 per barrel on Tuesday, following a 4% drop in the previous session. The market grappled with tensions in the Middle East, concerns about demand, and increasing OPEC supply. Geopolitical tensions persist in the region, compounded by an ongoing supply disruption in Libya. The closure of Libya's largest oilfield has impacted daily oil production by approximately 0.3 million barrels. Major shipping companies are also avoiding the Red Sea due to security threats from Yemeni Houthi militants. On Monday, Saudi Arabia's sharp cuts to its official selling prices led to a significant decline in oil prices. The market now awaits US inventory data from the American Petroleum Institute industry group.

The RealClearMarkets/TIPP Economic Optimism Index in the US went up to 44.7 in January 2024, the highest in eight months, from 40 in December. The reading beat forecasts of 42, but remained in negative territory. The Six-Month Economic Outlook, which measures how consumers perceive the economy's prospects in the next six months, increased to 39.3 from 34.3. The Personal Financial Outlook rose to 55 from 49.5 and has now returned to positive territory; and the Confidence in Federal Economic Policies, which measure of views on the effectiveness of government economic policies, increased to 39.8 from 36.1. Boosted by stock market gains in December, optimism among investors gained 20% to 54.9, while it rose by 5% among non-investors to 39.3.

Canada recorded a trade surplus of CAD 1.6 billion in November of 2023, narrowing considerably from the CAD 3.2 billion surplus in the previous month and under market expectations of CAD 2 billion. The narrower surplus was attributed to a 1.9% increase in imports to CAD 64.2 billion. Foreign purchases rose for 8 of 11 product sections, led by an increase in energy imports (11.6%) amid significant buying of uranium for Kazakhstan, consistent with mining troubles from domestic mines. Also narrowing the surplus, exports fell by 0.6% to CAD 65.7 billion with declines in 7 of 11 product sections, led by lower sales of metal and non-metallic mineral products and aircraft and transportation equipment.

The NFIB Small Business Optimism Index in the US went up to 91.9 in December 2023, the highest in five months, compared to 90.6 in November and beating forecasts of 90.7. Twenty-three percent of small business owners reported that inflation was their single most important problem in operating their business, up one point from last month, and replacing labor quality as the top concern. Small business owners expecting better business conditions over the next six months increased six points to -36% and a net 29% of owners plan to raise compensation in the next three months, down one point from November. Also, the net percent of owners raising average selling prices was unchanged from November at a net 25% and a net percent of owners who expect real sales to be higher increased four points from November to -4%, the highest reading since January 2022. However, “small business owners remain very pessimistic about economic prospects this year,” said NFIB Chief Economist Bill Dunkelberg.

The seasonally-adjusted jobless rate in the Euro Area hit 6.4% in November 2023, aligning with June's historic low and slightly surpassing the market forecast of 6.5%, as the number of unemployed individuals declined by 99 thousand from the prior month to 10.970 million. Meanwhile, the youth unemployment rate, reflecting those under 25 seeking employment, fell to 14.5% from the previous month's 14.8%. Across the major Euro Area economies, Spain reported the highest jobless rate at 11.9%, followed by Italy at 7.5% and France at 7.3%. In contrast, Germany and the Netherlands boasted the lowest rates at 3.1% and 3.5%, respectively.