Global shares traded steadily near record highs ahead of an action-packed week that looks certain to see the Bank of Canada and U.S. Federal Reserve cut interest rates.

As The Globe’s Mark Rendell reports, the BoC and the Fed paused their easing cycles to wait for more clarity about how U.S President Donald Trump’s tariffs would ripple through the global economy and affect consumer prices.

Trade disruptions have taken a toll on both countries and the Fed comes under increasing political pressure to lower borrowing costs.

Wall Street futures were mixed with the Nasdaq pointing lower after notching another record high on Friday.

TSX futures pointed higher after Canada’s main stock index closed down in the previous session.

“The key question for the September [Fed] meeting is whether the committee will signal that this is likely the first in a series of consecutive cuts,” said David Mericle, chief U.S. economist at Goldman Sachs.

“We expect the statement to acknowledge the softening in the labor market but do not expect a change to the policy guidance or a nod to an October cut.”

Overseas, the pan-European STOXX 600 was up 0.33 per cent in morning trading. Britain’s FTSE 100 edged up 0.02 per cent, Germany’s DAX gained 0.21 per cent and France’s CAC 40 advanced 0.95 per cent.

In Asia, Japan’s Nikkei was closed for a holiday, while Hong Kong’s Hang Seng rose 0.22 per cent.

Oil prices edged higher as investors assessed the impact of Ukrainian drone attacks on Russian refineries, while U.S. President Donald Trump said he was prepared to impose sanctions on Russia if NATO nations stop buying Russian oil.

Brent crude futures rose 0.5 per cent to US$67.31 a barrel. West Texas Intermediate (WTI) crude was at US$63.01 a barrel, up 0.5 per cent.

“The attack suggests a growing willingness to disrupt international oil markets, which has the potential to add upside pressure on oil prices,” JPMorgan analysts led by Natasha Kaneva said in a note, referring to the attack on Primorsk.

In other commodities, spot gold was steady at US$3,642.65 an ounce. U.S. gold futures for December delivery were down 0.2 per cent at US$3,680.20.

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

The day range on the loonie was 72.15 US cents to 72.32 US cents in early trading. The Canadian dollar was down about 0.19 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, dropped 0.07 per cent to 97.48.

The euro advanced 0.17 per cent to US$1.1753. The British pound gained 0.29 per cent to US$1.3598.

In bonds, the yield on the U.S. 10-year note was last down at 4.061 per cent.

China retail sales, industrial production and fixed asset investment

Euro zone trade surplus

(8:30 a.m. ET) Canada’s manufacturing sales and new orders for July. Estimates are month-over-month gains of 1.8 per cent and 2.0 per cent, respectively.

(8:30 a.m. ET) Canadian wholesale trade for July. Estimate is a rise of 1.3 per cent from June.

(8:30 a.m. ET) Canadian new motor vehicle sales for July. Estimate is a year-over-year increase of 6.5 per cent.

(8:30 a.m. ET) U.S. Empire State Manufacturing Survey for September.

(9 a.m. ET) Canada’s existing home sales and average prices for August. Estimates are rises of 2.0 per cent and 1.0 per cent year-over-year, respectively.

(9 a.m. ET) Canada’s MLS Home Price Index for August. Estimate is a decline of 3.5 per cent year-over-year.

With Reuters and The Canadian Press