Global markets attempted a rebound after a brutal selloff earlier in the week, as the latest escalation of global trade tensions left investors nervous.

Wall Street futures were in positive territory a day after the S&P 500 confirmed it was in a correction as markets worried the trade war could tip one of the world’s biggest economies into a recession.

TSX futures followed sentiment higher.

U.S. President Donald Trump “is making it very clear that if anyone were to retaliate [against his tariffs], his counter-escalation is going to be even sharper,” said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho.

Overseas, the pan-European STOXX 600 was up 0.4 per cent in morning trading. Britain’s FTSE 100 rose 0.35 per cent, Germany’s DAX gained 0.3 per cent and France’s CAC 40 advanced 0.64 per cent.

In Asia, Japan’s Nikkei closed 0.72 per cent higher, while Hong Kong’s Hang Seng climbed 2.12 per cent.

Oil prices rebounded to recover some of their losses of more than 1 per cent yesterday, partly due to the diminishing prospects of a quick end to the Ukraine war that could bring back more Russian energy supplies.

Brent crude futures rose 0.9 per cent to US$70.52 a barrel. West Texas Intermediate (WTI) crude was at US$67.26 a barrel, up 1.1 per cent.

“Russia’s tepid support of a 30-day ceasefire proposal with Ukraine has reduced confidence around a ceasefire in the short term,” IG market analyst Tony Sycamore said.

“The feeling is that U.S. won’t lift sanctions until they agree a ceasefire.”

In other commodities, spot gold pierced through the psychological milestone of US$3,000 an ounce, rising 0.71 per cent. U.S. gold futures rose 0.8 per cent to US$3,015.

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

The day range on the loonie was 69.08 US cents to 63.39 US cents in early trading. The Canadian dollar was down about 1.6 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.09 per cent to 103.92.

The euro was little changed at US$1.0853. The British pound fell 0.15 per cent to US$1.2931.

In bonds, the yield on the U.S. 10-year note was last up at 4.302 per cent ahead of the North American opening bell.

Germany CPI, which unexpectedly fell in February, pointing to a downward revision of euro zone figures that would back further policy easing by the European Central Bank.

England GDP, index of services, industrial production and trade deficit

(8:30 a.m. ET) Canada’s manufacturing sales and new orders. The Street is projecting month-over-month gains of 2.0 per cent and 2.5 per cent, respectively.

(8:30 a.m. ET) Canadian wholesale trade for January. Estimate is an increase of 1.8 per cent from December.

(8:30 a.m. ET) Canada’s new motor vehicle sales for January. Estimate is a year-over-year rise of 5.0 per cent.

(10 a.m. ET) U.S. University of Michigan Consumer Sentiment Survey for March.

With Reuters and The Canadian Press