Global markets were mixed ahead of a key meeting of central bankers and as traders evaluated promising diplomatic signals toward ending hostilities between Russia and Ukraine.

Wall Street futures were in negative territory after main U.S. markets closed on a muted note yesterday.

TSX futures pointed higher as Air Canada and striking flight attendants reach a tentative deal and ahead of the latest inflation numbers later this morning.

On Wall Street, markets are watching earnings from Home Depot Inc., which missed second-quarter estimates.

In the U.S., the Federal Reserve gathering in Jackson Hole, Wyo., later this week “looms as one potential source of volatility, and going into the event, the markets remain cautious,” Kyle Rodda, an analyst at Capital.com, wrote in a note to clients.

“A dovish shift is being priced in, with further strength in equity markets – and weakness in the U.S. dollar – reliant on the Fed meeting these expectations.”

Overseas, the pan-European STOXX 600 was up 0.47 per cent in morning trading. Britain’s FTSE 100 rose 0.22 per cent, Germany’s DAX gained 0.25 per cent and France’s CAC 40 advanced 0.86 per cent.

In Asia, Japan’s Nikkei closed 0.38 per cent lower, while Hong Kong’s Hang Seng slid 0.21 per cent.

Oil prices slipped as market participants contemplated a potential end to the war in Ukraine, which could lead to an end to sanctions on Russian crude.

Brent crude futures fell 0.8 per cent to US$66.07. West Texas Intermediate (WTI) crude sank 0.9 per cent to US$62.88 a barrel.

In other commodities, spot gold edged up 0.2 per cent to US$3,336.88 an ounce. U.S. gold futures for December delivery rose 0.1 per cent to US$3,381.20.

The Canadian dollar weakened against its U.S. counterpart.

The day range on the loonie was 72.33 US cents to 72.48 US cents in early trading. The Canadian dollar was down about 1.52 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.15 per cent to 98.02.

The euro rose 0.22 per cent to US$1.1688. The British pound advanced 0.18 per cent to US$1.3528.

In bonds, the yield on the U.S. 10-year note was last down at 4.327 per cent.

Air Canada’s unionized flight attendants have reached an agreement with the country’s largest carrier, the union said this morning, ending the strike that was declared illegal yesterday.

(8:30 a.m. ET) Canadian CPI for July. Consensus is a month-over-month increase of 0.4 per cent and year-over-year rise of 1.8 per cent.

(8:30 a.m. ET) Canada’s construction investment for June.

(8:30 a.m. ET) U.S. housing starts for July. The Street is projecting an annualized rate decline of 2.4 per cent.

(8:30 a.m. ET) U.S. building permits for July. Consensus is a decline of 0.4 per cent on an annualized rate basis.

With Reuters and The Canadian Press