Global markets were mixed as investors awaited a key slate of earnings that could test Wall Street’s AI-driven rally, while caution prevailed due to escalating tensions in the Middle East.

Wall Street futures were in positive territory after major North American markets closed lower on Friday.

TSX futures followed sentiment higher ahead of the latest inflation reading.

On Wall Street, markets are watching earnings from Domino’s Pizza Inc. and Steel Dynamics Inc.

Domino’s missed sales and profit estimates for the second consecutive quarter, underscoring pressure from weak demand, intensifying competition and macroeconomic uncertainty.

“If earnings reports in the coming weeks suggest that we remain in the spend phase of the AI buildout, investors are likely to get more impatient, and the sell-off could drag on over the summer months,” said Kathleen Brooks, research director at XTB.

Overseas, the pan-European STOXX 600 was up 0.05 per cent in morning trading. Britain’s FTSE 100 fell 0.46 per cent, Germany’s DAX gained 0.32 per cent and France’s CAC 40 advanced 0.26 per cent.

In Asia, Japan’s Nikkei was closed for a holiday, while Hong Kong’s Hang Seng rose 2.36 per cent.

Oil prices reversed early gains after Iran’s foreign ministry said negotiations with the U.S. could be pursued based on national interests.

Benchmark prices had earlier touched more than one-month highs on concern over disruption to shipments through the Strait of Hormuz.

Brent crude futures edged up 0.15 per cent to $88.23 a barrel. West Texas Intermediate (WTI) dropped 0.48 per cent to $82.09.

“Comments from Iran’s foreign ministry spokesperson saying that the country has received new proposals from mediators have seen oil prices giving up all earlier gains, though flows through the Strait of Hormuz remain depressed,” said UBS analyst Giovanni Staunovo. 

In other commodities, spot gold was steady at US$4,018.75 an ounce. U.S. gold futures for August delivery gained 0.1 per cent to US$4,023.20.

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

The day range on the loonie was 71.23 US cents to 71.41 US cents in early trading. The Canadian dollar was up about 0.9 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.04 per cent to 100.80. The dollar was pegged at $1.4025.

The euro dropped 0.06 per cent to US$1.1433. The British pound gained 0.13 per cent to US$1.3469.

In bonds, the yield on the U.S. 10-year note was last up at 4.565 per cent.

8:30 a.m. ET: Canadian consumer price index for June. Consensus is for a decline of 0.2 per cent from May and a rise of 3 pr cent from a year earlier

8:30 a.m. ET: Canadian construction investment for May

8:30 a.m. ET: Canadian household credit

10 a.m. ET: U.S. leading indicator for June

With Reuters and The Canadian Press