Global markets fell after the previous session’s selloff amid concerns ‌that oil prices firmly above US$100 could deepen the energy shock and as global bond yields hit fresh highs.

Wall Street futures were in the red ahead of the U.S. Federal Reserve’s interest rate call tomorrow.

TSX futures followed sentiment lower.

“Several weeks ago, there may not have been a strong ​reason to believe that crude would rally further, but there is ⁠now: Iran’s strategic military doctrine has shifted toward pre-emptive attack,” Thierry Wizman, global forex and rates ⁠strategist at Macquarie Group, said.

“And the U.S. administration may have no choice but to move back to kinetic war after the ​mid-term elections,” he added.

Overseas, the pan-European STOXX 600 was down 0.34 per cent in morning trading. Britain’s FTSE 100 slid 0.4 per cent, Germany’s DAX dropped 0.3 per cent and France’s CAC 40 declined 0.42 per cent.

In Asia, Japan’s Nikkei closed little changed, while Hong Kong’s Hang Seng fell 1 per cent.

​Oil prices extended gains after attacks on Saudi ​Arabian energy infrastructure left the kingdom’s East-West pipeline ‌offline, raising fears that damage to energy infrastructure and transport routes could take longer to repair.

Brent crude futures rose 1.94 per cent to US$107.70 a barrel. West Texas ⁠Intermediate futures (WTI) ​were up 2.4 per cent to trade at US$103.80 a barrel.

“Fresh attacks by the Houthis targeting Saudi Arabia may ​be influencing oil market investors’ expectations about the severity ‌and duration of the conflict,” said Hamad Hussain, senior climate and commodities economist at Capital Economics.

In other commodities, spot gold as down 0.7 per cent to US$4,266.49 an ounce. U.S. gold futures fell 1 per cent to US$4,307.40.

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

The day range on the loonie was 71.85 US cents to 71.96 US cents in early trading. The Canadian dollar was down about 0.05 per cent against the greenback over the past month. It traded at $1.3907 per US$1.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.21 per cent to 99.60.

The euro declined 0.1 per cent to US$1.1539. The British pound dropped 0.16 per cent to US$1.3478.

In bonds, the yield on the U.S. 10-year note was last up at 5.022 per cent its highest in nearly two decades.

China’s retail sales, industrial production and fixed asset investment

Japan’s trade deficit

Euro zone’s trade surplus

5 a.m. ET: Canada’s existing home sales for August which fell 6.9 per cent year over year. On a seasonally adjusted basis, activity fell 0.7 per cent from July.

5 a.m. ET: Canada’s MLS Home Price Index for August. Estimate is a decline of 3.0 per cent from the same period a year ago.

8:15 a.m. ET: U.S. ADP Employment for Aug. 29.

8:30 a.m. ET: Canadian wholesale trade for July. Estimate is a decline of 0.5 per cent from June.

8:30 a.m. ET: Canada’s new motor vehicle sales for July. Estimate is a year-over-year slid of 2.0 per cent.

Also: U.S. Fed meeting begins.

With Reuters and The Canadian Press