Global stocks wobbled in cautious trading after Canada and Mexico struck deals for a 30-day reprieve from U.S. President Donald Trump’s 25-per-cent tariffs, with investors assessing the road ahead.

Wall Street futures were in negative territory after markets closed down yesterday.

TSX futures followed market sentiment lower.

In Canada, investors are getting results from Allied Properties REIT and Finning International Inc.

On Wall Street, markets are watching earnings from Alphabet Inc., Advanced Micro Devices Inc., Amgen Inc., Merck & Co. Inc., Pfizer Inc., PayPal Holdings Inc., Pepsico Inc. and Chipotle Mexican Grill Inc.

The “trade war story remains alive and well and this has a lot further to play out,” said Shane Oliver chief economist at AMP in Sydney.

Overseas, the pan-European STOXX 600 was down 0.05 per cent in morning trading. Britain’s FTSE 100 fell 0.14 per cent, Germany’s DAX rose 0.03 per cent and France’s CAC 40 gained 0.19 per cent.

In Asia, Japan’s Nikkei closed 0.72 per cent lower, while Hong Kong’s Hang Seng advanced 2.83 per cent after markets were closed much of last week for lunar new year celebrations.

U.S. crude prices fell by as U.S. tariffs on China took effect and Beijing announced retaliated with measures targeting U.S. imports and companies, heightening trade war fears.

Brent futures fell 1 per cent to US$75.23 a barrel. West Texas Intermediate (WTI) crude declined 1.65 per cent to US$71.95 a barrel.

“China’s counter-tariffs on the US may be perceived as a sign of escalation and may reduce the likelihood of a temporary resolution akin to U.S. agreements with Mexico and Canada,” IG market strategist Yeap Jun Rong said.

“As such, broader risk sentiments pare some optimism amid the changing dynamics, with oil prices extending losses further.”

In other commodities, spot gold gained 0.1 per cent to US$2,809.91 an ounce, after hitting a record high of US$2,830.49 yesterday. U.S. gold futures fell 0.5 per cent to US$2,843.50.

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

The day range on the loonie was 68.94 US cents to 69.51 US cents in early trading. The Canadian dollar was down about 0.34 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, retreated 0.43 per cent to 108.53.

The euro slid 0.16 per cent to US$1.033. The British pound was down 0.24 per cent to US$1.2419.

In bonds, the yield on the U.S. 10-year note was last up at 4.574 per cent ahead of the North American opening bell.

Spotify has forecast first-quarter profit above market estimates as the Swedish audio-streaming giant benefits from steady user growth, price hikes and a cost-cutting drive.

Pepsico is forecasting annual profit below expectations and has missed quarterly revenue estimates, as the Frito-Lay maker faces weakening demand for its sodas and snacks in the U.S., its largest market.

(10 a.m. ET) U.S. Job Openings and Labour Turnover Survey for December.

(10 a.m. ET) U.S. factory orders for December. The Street is projecting a month-over-month rise of 0.5 per cent.

With Reuters and The Canadian Press