Equities
Global markets were mixed as investors grappled with concerns over a fresh escalation in the Middle East conflict and valuations in AI-related stocks.
Wall Street futures pointed lower after major North American markets closed up on Friday.
TSX futures were little changed.
In Canada, investors are getting results from PrairieSky Royalty Ltd.
“Short term, we still remain optimistic that we could have a fudge or a patch that would enable oil to flow through and put a lid on oil prices. [U.S. President Donald] Trump is constrained due to mid-term elections and the prospects of losing the Senate, as well as the House,” said Mohit Kumar, an economist at Jefferies.
“He would be much more amenable to some version of a deal before mid-terms to keep oil prices in check,” he added.
Overseas, the pan-European STOXX 600 was down 0.12 per cent. Britain’s FTSE 100 slid 0.15 per cent, Germany’s DAX rose 0.13 per cent and France’s CAC 40 advanced 0.16 per cent.
In Asia, Japan’s Nikkei closed 1.92 per cent lower, while Hong Kong’s Hang Seng rose 0.16 per cent.
SK Hynix shares fell more than 15 per cent in Seoul, its biggest one-day decline in nearly two decades, as investors cashed out of a scorching share price rally following its Nasdaq debut last week.
Commodities
Oil prices surged after renewed military strikes between the United States and Iran reignited concerns over energy shipments through the Strait of Hormuz.
Brent crude futures were up 3.4 per cent to US$78.62, while West Texas Intermediate (WTI) crude gained 3.2 per cent to US$73.75 a barrel.
“Shipping operators are adopting a cautious approach and inbound movements have slowed under heightening security concerns,” ANZ analysts said.
In other commodities, spot gold dropped 1.4 per cent to US$4,061.64 an ounce. U.S. gold futures for August delivery were down 1.1 per cent to US$4,069.60.
Currencies and bonds
The Canadian dollar strengthened against its U.S. counterpart.
The day range on the loonie was 70.54 US cents to 70.80 US cents in early trading. The Canadian dollar was down about 1.05 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, dropped 0.02 per cent to 100.93. The dollar was pegged at $1.4142.
The euro advanced 0.06 per cent to US$1.1424. The British pound declined 0.06 per cent to US$1.3393.
In bonds, the yield on the U.S. 10-year note was last up at 4.588 per cent.
Other corporate news
Air Canada says it has reached a tentative collective agreement with the union representing the airline’s 11,000 technical operations, airports and cargo, logistics and supply employees.
Economic news
China’s trade balance, aggregate yuan financing and new yuan loans
2 p.m. ET: U.S. budget balance for June.
With Reuters and The Canadian Press