Australia

Australian shares are set to open higher, after the US market recouped losses from last week.

ASX futures were up 0.24% or 19 points as of 8:30am on Tuesday, suggesting a higher open.

US stocks jumped on Monday, bouncing back after last week's dismal performance.

The S&P 500 gained 0.9%, the Nasdaq Composite advanced 1.1%, while the Dow Jones Industrial Average added 0.7%, or about 254 points.

In commodity markets, Brent crude oil was down 0.3% to US$87.00 a barrel, while gold was up 0.1% at US$2,329.27.

In local bond markets, the yield on Australian 2 Year government bonds was up at 3.93% while the 10 Year yield was also up at 4.32%. US Treasury notes were down, with the 2 Year yield at 4.97% and the 10 Year yield at 4.61%.

The Australian dollar was 64.47 US cents, down from its previous close of 64.48. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was up at 100.49.

Asia

Chinese shares closed lower, despite most Asian peers posting gains. China's PBOC kept its loan prime rate unchanged despite a better-than-expected 1Q GDP. Oil and coal stocks led the losses, with Shanxi Coking Coal Energy and China Coal Energy falling 5.8% and 5.4%, respectively. China Oilfield Services declined 5.5%. Among the gainers, LONGi Green Energy Technology added 4.3% and Bank of Hangzhou advanced 4.1%. Hangzhou Hikvision Digital Technology gained 2.3% after the company's 2023 net profit rose 5.8%. The benchmark Shanghai Composite Index fell 0.7% to 3044.60, the Shenzhen Composite Index declined 0.5% and the ChiNext Price Index slipped 0.3%.

Hong Kong's Hang Seng Index closed 1.8% higher at 16511.69, extending earlier gains after China's benchmark lending rates were kept unchanged. Investors could also be keeping an eye out for the city's CPI data due out tomorrow. Among advancers, Sino Biopharmaceutical rose 8.5%, Sinopharm Group added 5.6% and Tencent Holdings was up 5.4%. Meanwhile, Li Auto was down 8.4% after it announced price cuts. The Hang Seng Tech Index ended 1.8% higher at 3336.35.

Japanese stocks ended broadly higher, led by gains in financial and food stocks, rebounding modestly from Friday's losses triggered by Israel's strike against Iran. Nissin Foods Holdings gained 4.6% and Mitsubishi UFJ Financial Group climbed 3.1%. The Nikkei Stock Average rose 1.0% to 37438.61. Investors are focusing on developments in the Middle East as well as any comments on the yen from Japanese officials. The 10-year Japanese government bond yield rose 5 basis points to 0.880%.

India's benchmark Sensex closed 0.8% higher at 73648.62, led by bank stocks. Market sentiment likely improved as Middle East tensions so far haven't escalated after Israel's retaliatory strikes on Iran, analysts said. Markets will continue to watch for possible geopolitical risks this week, the UOB Global Economics & Markets Research team said in a note. Axis Bank added 2.4%, State Bank of India gained 2.0% and ICICI Bank was 1.9% higher. Among non-index stocks, Indian Renewable Energy Development Agency rose 6.0% after 4Q net profit climbed 33% on year. Among decliners, NTPC lost 2.2% and JSW Steel was 1.2% lower. Investors are also focusing on earnings, with Reliance Industries set to announceresults later in the day.

Europe

European stocks rise, with the pan-European Stoxx Europe 600 index up 0.6% at 502.43, as easing geopolitical tensions boost risk appetite. U.K. stocks are notable outperformers, with the FTSE 100 up 1.6% at 8,023.87, close to record highs. Supermarkets and retailers lead gainers, helped by news that investors in grocer and tech company Ocado are pushing for a switch to a U.S. listing. Marks & Spencer is the top riser, up 4.4%, while Sainsbury's gains 3.8% and Tesco is up 3.2%. "The widespread gains seen for the index have seen the retailers and supermarkets come in for particular strength," writes Joshua Mahony, analyst at Scope Markets. Precious metal miner Fresnillo loses 3%, however, as gold prices fall.

The FTSE 100 closed up 1.6% to finish at 8,023.87.

North America

US stocks jumped on Monday, bouncing back after last week's dismal performance.

The S&P 500 gained 0.9%, ending a six-day streak of losses, with each of the benchmark index's 11 sectors finishing the day in the green. The tech-heavy Nasdaq Composite advanced 1.1% after falling 5.5% last week. The blue-chip Dow Jones Industrial Average added 0.7%, or about 254 points.

Easing tensions between Israel and Iran helped restore some market confidence. Brent crude oil slipped 0.3% to $87 a barrel, and gold futures slid 2.8% after reaching an all-time high on Friday.

The market faces a string of tests in the coming days, however.

The first-quarter earnings deluge begins this week, with more than 30% of S&P 500 companies set to report results, according to FactSet. Investors will be paying particularly close attention to results from big technology companies, after the so-called Magnificent Seven stocks shed nearly a trillion dollars in market value last week.

"Earnings from the megacap tech stocks will be more important than the inflation data this week," said Jay Hatfield, chief executive of Infrastructure Capital Advisors.

Shares of Tesla fell 3.4% ahead of its earnings results due out Tuesday. The other tech giants reporting this week are Google parent company Alphabet, Facebook owner Meta Platforms and Microsoft. Hatfield expects big tech companies to post solid earnings growth, helping lift the broader market.

Artificial-intelligence standouts were among the stocks that recovered Monday from last week's fallout. Alphabet added 1.4%. Chip maker Nvidia rose 4.4% after its biggest one-day decline on record.

Shares of Verizon Communications, which helped kick off this week's earnings, fell 4.7% after revenue missed Wall Street's expectations.

For the year, the S&P 500 is hanging on to a 5% gain, after falling 4.6% this month.

Stocks have pulled back and bond yields have climbed in April after resilient economic growth and firmer-than-expected inflation data cast doubt on the chances that the Federal Reserve will cut interest rates this year.

The yield on the 10-year Treasury note edged higher to 4.622% on Monday, from 4.613% on Friday.

New data on the economy this week could offer more clues on whether the central bank cuts rates in coming months. Investors on Thursday will get a look at how the U.S. economy fared in the first quarter, followed by the latest reading on the Fed's preferred inflation gauge on Friday.

An Atlanta Fed model for inflation-adjusted gross domestic product is forecasting first-quarter growth at 2.9%. Hotter-than-expected retail sales for March suggest a strong reading is in the cards.

Mike Dickson, head of research at Horizon Investments, said companies with healthy cash flows relative to their debt should fare well if interest rates remain higher for longer. Communication services and energy are two sectors he sees with companies that meet those qualities. Both sectors added more than a percentage point on Monday.

It is also crucial to see how stocks outside the big-tech names perform in the coming weeks, Dickson said.

"Everyone's been waiting for a rotation where the rest of the market starts participating in the rally as well," he said. "If stocks outside the Magnificent Seven can produce solid earnings growth, we can finally see the baton handed off."