Equities
Global markets were lower amid uncertainty after U.S. President Donald Trump claimed talks on ending the war were going well and gave Tehran more time to open the Strait of Hormuz, though there have been no signs of Iran backing down.
Wall Street futures were in the red after major North American markets closed down yesterday, with the Nasdaq in correction territory.
TSX futures followed sentiment lower.
On Wall Street, markets are watching earnings from Carnival Corp.
“Words alone aren’t cutting it right now, with President Trump’s extension of the pause on Iran energy strikes failing to lift the mood in any meaningful way. Tangible evidence of progress is what’s needed,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
Overseas, the pan-European STOXX 600 was down 1.16 per cent in morning trading. Britain’s FTSE 100 slid 0.89 per cent, Germany’s DAX declined 1.39 per cent and France’s CAC 40 dropped 0.93 per cent.
In Asia, Japan’s Nikkei closed 0.43 per cent lower, while Hong Kong’s Hang Seng rose 0.38 per cent.
Commodities
Oil prices were higher after Trump extended a pause in attacks on Iran’s energy plants for 10 days, though investors remained on edge as an imminent resolution to the conflict looked unlikely.
Brent futures climbed 1.4 per cent to US$109.70 a barrel. West Texas Intermediate futures were up 1.5 per cent cent to US$95.94 a barrel.
“Despite talks of de-escalation, oil is trading on war longevity, not just headlines. Any direct damage to oil infrastructure or prolonged conflict could force markets to rapidly reprice higher,” said Priyanka Sachdeva, analyst at Phillip Nova.
In other commodities, spot gold rose 1.1 per cent to US$4,425.398 an ounce. U.S. gold futures for April delivery gained 1 per cent to US$4,421.30.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 72.12 US cents to 72.23 US cents in early trading. The Canadian dollar was down about 1.49 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, advanced 0.15 per cent to 100.05.
The euro dropped 0.14 per cent to US$1.1511. The British pound fell 0.22 per cent to US$1.3300.
In bonds, the yield on the U.S. 10-year note was last up at 4.464 per cent.
Economic news
ECB three-year CPI expectations
8:30 a.m. ET: Canada wholesale trade for February
10 a.m. ET: University of Michigan consumer sentiment for March
Ottawa’s budget balance for January
With Reuters and The Canadian Press