At a meeting in Mexico City on Monday, U.S. President Joe Biden and Mexican President Andres Manuel Lopez Obrador discussed a range of issues, including economic ties, the illegal drug trade, and curbing illegal migration, with Lopez Obrador urging Biden to invest in the region. Despite the talk of strengthening ties, tensions remain, particularly on trade issues such as imports of genetically modified corn, auto rules of origin, customs rules, and Mexico's energy policies.

EQUITY

Despite market uncertainty, tech stocks such as Apple, Microsoft, and Alphabet led a broader market rally after Treasury yields fell amid expectations that the Federal Reserve would slow its pace of rate hikes. However, investors remain cautious about the stock market outlook ahead of Thursday's inflation data, which could have a major influence on the direction of the market and cause them to reassess the balance between risk and reward.

GOLD

Gold prices gained on Tuesday as investors awaited Fed Chair Jerome Powell's speech later in the day, which was expected to shed further insight on a likely halt in US interest rate hikes. Bullion prices have risen sharply in recent sessions, owing to increasing safe-haven demand amid predictions of a global recession in 2023.

OIL

The U.S. Federal Reserve's expected interest rate hikes could slow economic growth and limit fuel demand, but China's import quotas and U.S. crude inventory data could offer some relief by providing clues on fuel demand and supplies.

CURRENCY

The effects of the Fed's rapid rate hikes last year have already been seen, with investors expecting rates to peak just around 5% by June, while China's reopening of its borders has increased demand for riskier assets away from the safe haven attraction of the greenback. This market attitude has pushed the US dollar to a seven-month low against other major currencies, and traders are keeping a tight eye on the Fed's rate-hike path for additional cues.