In the US, investors will be closely monitoring PCE Price Index, personal income and spending, and speeches by several Fed officials. Also, the focus will be on the 2nd estimate of Q1 GDP growth, corporate profits, the, CB consumer confidence, pending home sales, and the Case-Shiller Home Price Index. Globally, attention will be on inflation rates for Germany, the Euro Area, France, Italy, Spain, Poland, Australia, and the Netherlands. GDP growth rates will be released for Switzerland, Turkey, India, and Canada. Unemployment rates will be reported for the Euro Area, Italy, Brazil, and Mexico. Also, key indicators to watch include Germany’s GfK Consumer Climate Indicator, and China’s NBS Manufacturing and Services PMI. Finally, in Japan, the focus will be on Governor Ueda's opening remarks at a conference hosted by the Bank of Japan, alongside releases of data for consumer confidence, the Tokyo CPI, retail sales, unemployment rate, and industrial production.

US stocks extended gains on Friday, with the S&P 500 adding 0.6%, the Nasdaq rising 1% and the Dow Jones increasing over 50 points, rebounding from losses in the previous two sessions, after revised figures for the Michigan consumer sentiment showed lower-than-anticipated consumer inflation expectations. All sectors were in the green, but communication services, utilities and consumer discretionary outperformed. Also, Nvidia was up 0.7%, extending a 9% surge on Thursday, after the company reported strong quarterly results. Among megacaps, Microsoft (0.6%) rebounded from early losses, and Apple (1.7%), Amazon (0.5%), Meta (2.8%) and Alphabet (1.1%) were all in the green. Traders have been worrying that the Fed will keep interest rates higher for longer, following hawkish FOMC minutes and the flash S&P Global PMIs that showed strong business activity and rising price pressures. On the week, the S&P 500 is down 0.7% so far and the Dow lost about 2.4% while the Nasdaq added 0.3%.

Retail sales in Canada are expected to have surged by 0.7% from the previous month in April of 2024, according to preliminary data, which would mark the sharpest increase in retail turnover in one year. Considering March, retail sales edged 0.2% lower from the previous month, the third consecutive drop, and revised from the preliminary reading of a stall. The decline was largely due to core a 0.6% slip in core retail sales, pressured by a contraction in turnover of home furnishings, electronics and appliances retailers (-1.6%), clothing, clothing accessories, shoes, jewelry, and leather goods retailers (-1.6%), and food and beverage retailers (-0.4%). Regarding more volatile components, turnover at gasoline stations and fuel vendors dropped by 0.7%, as higher prices for fuel offset a 1.7% slump in retail volume. On the other hand, turnover was higher in motor vehicles and parts dealers (1%). From the previous year, retail turnover jumped by 1.9%.

Mexico's trade deficit widened to $3.746 billion in April 2024, from $1.646 billion in the same month of 2023, well above market expectations of a $0.8 billion gap. Imports increased 15.4% year-on-year to $55.066 billion, as a 19.8% rise in purchases of non-oil goods more than offset a 28.2% decline in oil imports. Imports rose for consumer goods by 25.6%, intermediate goods by 11.5%, and capital goods by 32.5%. Meanwhile, exports rose at a softer 11.4% to $51.319 billion, of which non-oil sales increased 13.1% to $49.207 billion while oil exports fell 17.5% to $2.113 billion. Non-oil exports to the US rose by 13.8%, and those to the rest of the world grew by 9.5%. Throughout the first four months of 2024, Mexico recorded a trade deficit of $6.452 billion, compared with a $6.464 billion deficit in the corresponding period of 2023.

Brazil posted a current account deficit of $2.52 billion in April of 2024, up from a $247 thousand deficit in the corresponding period of the previous year, and above market forecasts of USD 1.1 billion deficit. The goods surplus narrowed to $6.8 billion from $7.38 billion last year, as imports surged by a sharp 18.6% to $24.56 billion, while exports increased by a softer 11.7% to $31.36 billion. Moreover, the primary income shortfall increased to USD 5.48 billion from USD 4.39 billion, as net expenses related to profits and dividends, linked to both direct and portfolio investments, amounted to USD 3.73 billion, down from USD 3.24 billion in the same period last year. Meanwhile, the services gap widened to USD 4 billion from USD 3.14 billion in April 2023, on higher net expenses for intelectual property, transportation, and equipment rental. On the other hand, the secondary income switched to a surplus of USD 0.15 billion from a deficit of USD 0.1 billion.

Producer prices in Spain fell by 6.6% year-on-year in April 2024, following an 8.2% slump in March, marking the 14th straight month of producer deflation. Main downward pressure continued to come from energy (-20.5% vs -24.7% in March), followed by intermediate goods (-4% vs -4.9%). Conversely, increases were observed for consumer goods (3.3% vs 3.9%) and capital goods (2% vs 2.3%). Excluding energy prices, the PPI index was flat in April, after decreasing by 0.1% in the prior month. Compared to the previous month, producer prices went down by 0.2%, after a 2.2% decline in the month before.