US equities were higher on Tuesday as energy prices pulled back and AI infrastructure extended its rebound. The S&P 500, Nasdaq 100, and Dow were around 0.6% higher. Oil and fuel prices eased as Iran and Israel held off from exchanging fire since their weekend operations, allowing for more negotiations between Tehran and Washington for a potential agreement that restores energy exports. Equities were supported by a rebound for Treasuries as markets gauged whether the Fed will deliver a rate hike this year. Pressure on fixed-income will be tested again tomorrow with May's inflation rate, set to rise further. Meanwhile, chips and datacenter stocks extended their rebound from yesterday after Friday's plunge. OpenAI confidentially filed for an IPO and Anthropic raised more cash, pointing to more spending on AI infrastructure. Nvidia gained over 1% and Micron extended its surge with a 4% jump, while Oracle gained 1% ahead of earnings this week.

Canada reported a trade surplus of C$2.7 billion in April 2026, up from C$1.8 billion in the prior month and slightly surpassing market forecasts of a C$2.6 billion. This marked the second consecutive trade surplus, and the largest since January 2025. Exports rose 1.6% month-on-month to a fresh record of $75.2 billion, with gains in 9 of 11 product categories, led by energy products (+9.7%). Notable increases were also seen for farm, fishing and intermediate food products (+8.9%) and motor vehicles and parts (+5.9%), partly offset by a 17.5% decline in metal and non-metallic mineral product exports. Meanwhile, imports edged up 0.3% to a new peak of $72.4 billion, mainly on account of basic and industrial chemical, plastic, and rubber products (16.9%); and electronic and electrical equipment and parts (4.2%).The country's trade surplus with the United States widened to C$9.5 billion in April, the largest surplus since February 2025, from C$7.8 billion in March

The annual inflation rate in Mexico eased to 3.94% in the second half of May of 2026 from 4.45% in the corresponding period of the previous month, the lowest in four months. It was slightly under market expectations of 4.02%, marking the return to the Bank of Mexico's tolerance band of one percentage point away from 3%. Inflation was muted for energy (3.27%) despite the surge in oil, natural gas, and coal prices globally since the outbreak of war in the Middle East, largely due heavy fuel tax credits and price caps implemented by the Mexican government. Meanwhile, inflation was also tame for core goods (3.78%) as non-food core goods (2.84%) was lower than core food goods (5.13%). In turn, inflation for services was higher (4.57%). From the previous month, the Mexican CPI fell by 0.2%, the first decline in two years, as the energy subsidies were expanded and drove energy prices to ease from the initial reaction to the war.

The South African economy grew by 0.5% qoq in Q1 2026, up from a 0.4% rise in Q4 and slightly above forecasts of 0.3%, despite turbulence late in the period from the Iran war. This marked the sixth straight quarter of expansion and the strongest performance since Q2 2025, as nine of the ten industries registered growth. The finance, real estate and business services sector was the main contributor, rising 0.9%, followed by agriculture (+3.9%), trade (+0.7%) and transport (0.7%). Manufacturing, however, was the biggest drag, falling by 0.8%. From the demand side, net external demand contributed significantly (+0.9 percentage points), as exports rose 0.5% while imports fell 2.6%. Meanwhile, household consumption edged up 0.1% and government spending rose 0.6%, while fixed investment declined 1.1%. Changes in inventories subtracted 0.3 percentage points. On an annual basis, the GDP rose by 1.9% in Q1, accelerating from a 0.8% advance in Q4 and slightly above estimates of a 1.8% growth.

Crude oil fell below $90 per barrel on Tuesday after surrendering most of the previous session’s gains, as Iran and Israel agreed to halt attacks against each other, boosting hopes that peace negotiations could move forward. The two countries exchanged strikes over the weekend, threatening a fragile ceasefire and fueling fears of a broader escalation. President Donald Trump urged both sides to deescalate and said talks with Tehran are continuing, adding that oil prices should ease once the conflict ends. While the ceasefire remains intact, the Strait of Hormuz is still effectively closed under a dual blockade by the US and Iran, severely disrupting shipments of crude, refined fuels, and natural gas to global markets.

Bank Indonesia unexpectedly raised its key interest rates in an off-schedule meeting on June 9, 2026, as mounting external pressures weighed on the rupiah. The benchmark rate was lifted 25bp to 5.5%, alongside increases in the overnight deposit facility to 4.5% from 4.25% and the lending facility to 6.25% from 6%. Policymakers also unveiled measures to bolster the currency, including incentives to attract foreign investment. The package aims to stabilise the rupiah amid Middle East–driven volatility and keep inflation within target. Officials said the move reflects efforts to safeguard financial stability and sustain confidence in the economy against rising external risks. Sentiment was further supported as the dollar index eased from a nine-week high after Iran and Israel agreed to halt attacks, easing geopolitical tensions and improving risk appetite. Separately, Governor Perry Warjiyo projected the rupiah at 16,800–17,500 per U.S. dollar in 2027, with GDP growth seen at 5.1%–5.9%.