Canadian stocks came under selling pressure on Monday, with the benchmark S&P/TSX Composite pulling back from its record high to end around the 19,400 level dragged by a massive selloff in the healthcare and technology sector. Growth-oriented stocks were likely to continue underperforming in this current market environment, with investors seeking groups that do well in an economic recovery. Village Farms International Inc and Westport Fuel Systems Inc were among the biggest laggards on the TSX, down 25% and 16%, respectively.

Oil prices were hovering near two-month highs on Monday, with WTI trading around the $65 per barrel level and building on the momentum from last week's solid performance amid a temporary closure of the largest US fuel pipeline due to a cyberattack. The White House reportedly works closely with Colonial Pipeline to help it recover from the attack as the network is the source of nearly half of the US East Coast's fuel supply, transporting 2.5 million barrels per day of gasoline and other fuels. On the supply side, OPEC+ started this month a gradual easing of oil production curbs after introducing deep cuts since a pandemic-induced oil price collapse in 2020. Elsewhere, Tehran might see sanctions lifted if negotiations to revive the 2015 nuclear deal between Iran and the US are successful. Oil prices are up more than 30% so far this year on the back of an improved demand outlook due to the successful vaccine rollout.

Gold has climbed above the $1,845 level for the first time since early February on Monday, before paring some gains and bottoming around $1,840/oz on a weaker dollar and rising inflation expectations. A disappointing employment report last week eased worries about the Federal Reserve reducing its massive stimulus program anytime soon, which, in turn, spooked investors away from the greenback. Meanwhile, median year-ahead inflation expectations in the US increased to 3.4 percent in April 2021, the highest level since September 2013. Investors now await US inflation data later this week to further gauge the country's economic recovery. Aside from the economic indicators, the precious metal benefited from safe-haven demand stemming from the ongoing coronavirus crises as infection rates continue to accelerate in India.

European stocks hovered near record highs on Monday, with the benchmark DAX closing virtually flat around the 15,400 level ahead of US inflation figures that investors expected would stress the economic recovery from the pandemic but fail to prompt the Fed to tighten monetary policy. The market continues to benefit from the upward momentum seen last week, on the back of an improved economic outlook due to the successful vaccine rollout and unprecedented monetary policy support. Meanwhile, ECB Chief Economist Philip Lane told a French newspaper that the ECB could still increase bond purchases at its June meeting if such a move is needed to keep borrowing conditions favourable.

Median year-ahead inflation expectations in the US increased to 3.4 percent in April 2021, the highest level since September 2013, amid mounting concerns over rising price pressure as the economy further re-opens. Home and rent price growth expectations increased to 5.5%, new series highs, while households' year-ahead spending growth outlook remained elevated. Meanwhile, expectations for inflation over the next three years held at 3.1 percent, the highest since July 2014.

After rising to a 3-year high above $2.2 per gallon earlier on Monday, gasoline futures traded lower at around $2.1 after a ransomware attack forced the temporary shutdown of the Colonial Pipeline, the US’s largest conduit for refined products. The White House reportedly works closely with Colonial Pipeline to help it recover from the attack as the network is the source of nearly half of the US East Coast's fuel supply, transporting 2.5 million barrels per day of gasoline and other fuels. The attack comes just as the nation’s energy industry is preparing to meet stronger fuel demand from summer travel.

Brazil’s main stock index ended on a negative note on Monday as shares turned negative after three straight days of gains, with investors getting worried about a pandemic that is far from controlled. Brazil expects to sign a new deal this week with Pfizer for 100 million more vaccine doses, as the country's death toll from COVID-19 continues to spiral out of control. On the economic front, the central bank weekly "Focus" survey showed inflation projections fluctuated from 5.04% to 5.06% in 2021 but remained at 3.61% for 2022. At the same time, growth forecasts were lifted to 3.21% from 3.14% in 2021, while GDP projections were lifted to 2.33% from 2.31% in 2022. Locaweb Servicos de Internet SA and Banco Inter SA were the biggest laggards on the index, down 5.3% and 4.9%, respectively.

The Baltic Dry Index rose nearly 1.8% to 3,240 on Monday, halting a two-day losing streak, lifted by record iron ore prices amid hopes of a global economic recovery alongside worries on capacity constraints. The capesize index, which tracks iron ore and coal cargos of 150,000-tonnes, advanced 2.1% to 5,109; and the panamax index which tracks cargoes of about 60,000 to 70,000 tonnes of coal and iron ore, rose 2% to 3,014. Among smaller vessels, the supramax index added 20 points to 2,216.

The US Dollar Index held below 90.2 on Monday, extending the biggest decline in five months last Friday and heading closer toward February 2018 low. The US economy only added 266,000 jobs in April cementing expectations that the US central bank will remain ultra-accommodative until the economy recovers further. Earlier, the currency has been already under pressure on retreating Treasury yields and improving sentiment toward economies outside the US. The Euro and Pound touched an over two-month high supported by optimism about a strong economic recovery as the reopening efforts continue amid pick up in COVID-19 vaccinations. Meanwhile, the onshore yuan advanced to its strongest level in 3 years amid an improving outlook for China’s economy, capital inflows and large trade surplus.