Global markets lost ground ahead of U.S. CPI data later this week, with Brent crude hitting the key US$100-per-barrel level as renewed tensions in the Middle East fanned inflation worries and curbed risk appetite.

Wall Street futures were in the red after major North American markets closed down yesterday amid the escalating trade war between Canada and the U.S.

In the latest salvo yesterday, U.S. President Donald Trump issued a sweeping ban on imports of Canadian alcohol, motorcycles and some dairy products as Washington ratchets up pressure in response to Ottawa’s countertariffs that came into effect yesterday.

TSX futures followed sentiment lower.

In Canada, investors are getting results from Transcontinental Inc. North West Co. Inc. will hold a conference call this morning after releasing results after markets closed yesterday and increasing its quarterly dividend by 2.4 per cent.

“Across several of the major macro markets, we see indecision in the price action – tight ranges and a general holding/consolidation pattern,” Chris Weston, head of research at Pepperstone, wrote in a client note.

Brent crude is currently “one of the clearest real-time signals for sentiment” for the overall market,” he said.

Overseas, the pan-European STOXX 600 was down 1.08 per cent in morning trading. Britain’s FTSE 100 fell 0.68 per cent, Germany’s DAX dropped 1.21 per cent and France’s CAC 40 declined 1.41 per cent.

In Asia, Japan’s Nikkei closed 0.19 per cent lower, while Hong Kong’s Hang Seng slipped 0.17 per cent.

Benchmark Brent crude oil futures rose past US$100 a barrel, breaching the symbolic barrier for the first time since July 24 as intensifying conflict in the Middle East fuelled growing concern about oil flows from the region.

Brent crude futures were up 2.6 per cent to US$100.50 a barrel, while West Texas Intermediate (U.S.) crude gained 2.3 per cent to US$95.18 a barrel.

“Market participants appear to be pricing in ​a more prolonged conflict in the Middle East as well as the risk that the latest escalation in military strikes disrupts oil flows from the Middle East,” said Hamad Hussain, senior climate and commodities economist at Capital Economics.

“The key risk is whether the recent attacks on oil tankers lead to fewer ship-to-ship transfers taking place ⁠in the Gulf of Oman, which have so far played a key role in providing oil to global markets and keeping a lid on prices.”

In other commodities, spot gold was up 1.1 per cent at US$4,401.09 an ounce. U.S. gold futures edged 0.1 per cent higher to US$4,445.10.

The Canadian dollar was little changed against its U.S. counterpart.

The day range on the loonie was 72.50 US cents to 72.64 US cents in early trading. The Canadian dollar was up about 1.15 per cent against the greenback over the past month. It traded at $1.3785 per US$1.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.06 per cent to 98.85.

The euro was flat at US$1.1626. The British pound declined 0.06 per cent to US$1.353.

In bonds, the yield on the U.S. 10-year note was last up at 4.811 per cent.

Japan’s machine tool orders

8:15 a.m. ET: U.S. ADP Employment (four-week average) for Aug. 22.

10 a.m. ET: U.S. quarterly services survey for Q2.

With Reuters and The Canadian Press