Global markets were mixed as lower oil prices and ⁠falling bond ​yields lifted appetite in Europe, while a sharp selloff in chipmakers in Asia prompted a broader rethink of the AI trade amid heightened competition.

Wall Street futures diverged, with the Nasdaq pointing lower, as investors eye big bank earnings.

TSX futures were in positive territory after Canada’s main stock market closed up Friday as weaker-than-expected domestic jobs data reduced expectations for Bank of Canada interest rate hikes.

On Wall Street, markets are watching earnings from Citigroup Inc., Goldman Sachs Group Inc., Johnson & Johnson, JPMorgan Chase & Co., UnitedHealth Group Inc. and Wells Fargo & Co.

Investors “are questioning not just how much AI demand can grow, but how long today’s exceptional profits and margins can last as competition increases,” said Charu Chanana, chief investment strategist at Saxo.

Overseas, the pan-European STOXX 600 was up 0.57 per cent in morning trading. Britain’s FTSE 100 rose 0.73 per cent, Germany’s DAX advanced 0.52 per cent and France’s CAC 40 gained 0.27 per cent.

In Asia, Japan’s Nikkei closed 1.82 per cent lower, while Hong Kong’s Hang Seng climbed 0.3 per cent.

Oil prices fell as traders ​assessed supply risks from attacks on Saudi Arabia while weighing the prospect of additional diesel supplies from Russia.

Brent crude futures dropped 2.09 per cent to US$104.40 a barrel, while West Texas Intermediate (WTI) crude futures were down 2.09 per cent at US$91.78 a barrel.

U.S. President Donald Trump said Russia had ​agreed to supply diesel to global markets, and ‌his administration temporarily lifted U.S. sanctions on Russian fuel designed to deprive Moscow of revenue for its war on Ukraine.

“Russia’s promise to supply 3-3.5 million tons per month by the ⁠end of the year is unlikely to be accomplished, given the dire state of the ​country’s refining sector,” said PVM Oil Associate Analyst Tamas Varga.

In other commodities, spot gold was up 0.4 per cent to US$4,186.91 an ounce. U.S. gold futures for December delivery rose 0.5 per cent to US$4,211.30 an ounce.

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

The day range on the loonie was 69.92 US cents to 70.15 US cents in early trading. The Canadian dollar was down about 2.37 per cent against the greenback over the past month. It traded at $1.4259 per US$1.

The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.25 per cent to 102.33.

The euro rose 0.22 per cent to US$1.1182. The British pound gained 0.23 per cent to US$1.3240.

In bonds, the yield on the U.S. 10-year note was last down at 5.196 per cent.

Germany consumer price index

6 a.m. ET: U.S. NFIB small business and economic trends survey for September

8:15 a.m. ET: U.S. ADP employment report for week of Sept. 26

10 a.m. ET: U.S. existing home sales

2 p.m. ET: U.S. budget balance

Several U.S. Federal Reserve members will be speaking throughout the day.

With Reuters and The Canadian Press