The US equity markets fell last week as investors reviewed the evidence of a possible soft landing.
The S&P500 had the worst week of 2023 and lost 1.1 per cent over the week.
Similarly, the Nasdaq was 0.6pc lower on Friday and 2.4pc lower over the week.
About 70pc of S&P500 companies have reported results in which 58 companies have issued a negative profit outlook for the first quarter.
In contrast, according to FactSet, just 13 have issued a forecast that topped analyst expectations.
Despite the negative earnings outlook, US consumer sentiment still improved, according to the survey from the University of Michigan.
The index increased to 66.4 from 64.9 on the preliminary reading, beating the consensus for 65.0.
That was the third consecutive increase and took the index to its highest level in more than a year.
One of the significant news flows from last Friday was the higher-than-expected Canadian employment number for January.
The employment number rose by 150,000, where the consensus was for just 15,000, and the unemployment rate remained at 5pc, lower than the consensus of 5.1pc.
The hourly wage growth slowed from 5.2pc to 4.5pc, but the overall labour market remained resilient.
The Bank of Canada noted, "if economic developments evolve broadly in line with the MPR outlook, Governing Council expects to hold the policy rate at its current level".
In Australia, the RBA raised rates by 25bps, pushing the cash rate to 3.35pc.
The RBA remains hawkish despite the nine consecutive increases, with the RBA board expecting "further increases in interest rates will be needed over the months ahead".
Markets are now pricing a terminal RBA cash rate of 4.14pc in August, from 3.72pc ahead of the February meeting.
The RBA expects inflation to decline to 4.75pc over 2023 and be around 3pc by mid-2025.
In the commodity space, oil prices were strong over the last week.
West Texas Intermediate posted its biggest weekly gain since October, up 8.6pc to $79.72, while Brent was 8.1pc higher to $86.39.
The main contributor to the price increase was Russia announcing a cut of 5pc to January's output in response to western price caps.
Also supportive was Saudi Arabia's decision to increase prices to Asian countries on a combination of supply disruptions in Turkey, Norway and Kazakhstan and stronger demand from China.
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