US futures were higher on Tuesday, with the three major averages adding around 0.3%, and extending gains from the previous session, as the earnings season rolls in. Shares of Danaher soared about 8% in premarket trading after beating on both earnings and revenue. UPS was up nearly 1.5% after posting better-than-expected earnings. Also, Lockheed Martin gained 2.5% after reporting a rise in sales led by missiles, air-defense systems and space hardware. General Motors jumped over 4% following an earnings beat and raised profit outlook. Tesla (0.3%) and Visa (0.5%) both saw slight gains in premarket trading, ahead of their earnings reports. On the other hand, PepsiCo was slightly down (-0.3%) as its results failed to impress investors. On the data front, the S&P Global PMIs for the US will be in the spotlight.

Wheat futures held at the $5.8 per bushel level, trading close to the over-two-month-high of $5.9 touched on April 22nd as markets continued to digest the potential impact of threats to supply. New forecasts pointed to dryer weather in the US Wheat Belt in the coming weeks, hampering growing conditions in the key region to weigh against earlier hopes of a bumper domestic crop. Excessive heat also dimmed output expectations for Australia, a major exporter. Still, futures remained 60 cents cheaper year-to-date amid strong output from other key growers. April's USDA WASDE report maintained its previous upgrade to Russian wheat production, pointing to a near-record-high 91.5 million tonnes this year, which lifts available wheat for export to an all-time high of 51 million tonnes, by far the largest in the world. Additionally, the report upwardly revised supply for the European Union, Moldova, and Pakistan.

Gold fell under $2,300 per ounce on Tuesday to its lowest level in nearly three weeks, as risk appetite returned to the markets after worries of an all-region war in the Middle East receded. Investors hope that the Iran-Israel conflict will have no further escalation since Iran downplayed the scale of Israel's drone attack. Additionally, the US dollar held around six-month highs, contributing to gold's decline amid reduced bets of Fed interest rate cuts. Several Fed members stated that the rates could be maintained at the current levels for an extended duration due to sticky inflation and a resilient economy. Elevated interest rates dampen the demand for non-yielding metals. Traders are now anticipating the release of US GDP Q1 figures and the US March's personal consumption expenditures data later in the week to gain more insight into the path of monetary policy.

The FTSE 100 index advanced 0.7% to hover near the 8,080 mark on Tuesday, extending yesterday’s sharp gain to a new record high, amid optimistic corporate developments and as expectations of incoming rate cuts by the Bank of England weaken the pound. AB Foods led the gains with an over 8% surge after announcing that profit grew in its key retail arm, Primark, and its sugar division in Q1. The positive retail news also supported Ocado, M&S, and JD Sports shares to add between 5% and 2%, with the latter also impacted by its proposed acquisition of US-based Hibbett. Strong corporate results also pulled Taylor Wimpey shares 1% higher after noting that sales are progressing as expected in its newest trading update, overcoming concerns that high interest rates would hurt orders for the homebuilder. In the meantime, banks stretched their gains with Standard Chartered and Barclays adding 1.5%, with the latter due to release its corporate results on Thursday.

The HCOB Germany Composite PMI rose to 50.5 in April 2024 from 47.7 in the previous month, easily beating market expectations of 48.6, a preliminary estimate showed. The latest reading was above the 50.0 no-change threshold for the first time since June 2023, signaling a modest rate of expansion in private sector business activity, led by a sharp rebound in service sector output. However, manufacturing production continued to contract, although at a slower pace. Total new business and backlogs of work contracted the least in nearly a year, while employment increased fractionally following a decrease the month before. On the price front, both input costs and output charges rose at a faster pace. Finally, overall business confidence ticked down slightly, as the degree of optimism in the service sector cooled from March’s 25-month high.

Public sector net borrowing, excluding public sector banks, in the UK decreased to £11.9 billion in March 2024 compared to £16.6 billion in the corresponding period last year, with receipts rising by 7.4% to £98.9 billion and expenditure advancing at a slower rate of 2% to a record £110.9 billion. Considering the entire financial year ending in March 2024, borrowing declined to £120.7 billion from £128.3 billion but remained above the £114.1 billion projected by the OBR. This was equivalent to 4.4% of the UK’s GDP. Total public sector spending increased by £58.4 billion to £1.22 trillion as a large reduction in interest payable and the closure of energy support schemes were surpassed by increases in spending on public services and benefits, while receipts rose by £66.0 billion to £1.10 trillion, driven by a 7.5% surge in central government tax receipts.