Global stocks were mixed as the AI boom continued to drive demand, offsetting news of fresh attacks in the Gulf that challenged optimism about a reopening of the Strait of Hormuz and lifted oil prices.

Wall Street futures were in positive territory after major North American markets closed up on Friday.

TSX futures followed sentiment higher.

On Wall Street, markets are watching earnings from Hewlett Packard Enterprise Co.

“Even though there have been attacks from both sides, the market is holding on to the fact that negotiations are ongoing, and an elusive Iran/U.S. deal to end the war in the Middle East and to reopen the Strait of Hormuz will still be found,” XTB research director Kathleen Brooks said.

“As the focus switches to a raft of macro releases later this week, investors will need to watch how this plays out, and any delay in reaching a deal could knock market sentiment,” she said.

Overseas, the pan-European STOXX 600 was down 0.15 per cent in morning trading. Britain’s FTSE 100 slipped 0.12 per cent, Germany’s DAX gained 0.29 per cent and France’s CAC 40 advanced 0.14 per cent.

In Asia, Japan’s Nikkei closed 0.91 per cent higher, while Hong Kong’s Hang Seng rose 0.86 per cent.

Oil prices rose after Iran and the U.S. traded strikes and Israel ordered troops to move further into Lebanon in its battle with Tehran-backed Hezbollah.

Brent futures gained 3 per cent to US$93.90 a barrel. West Texas Intermediate (WTI) crude futures advanced 3.6 per cent to US$90.50 a barrel.

Concerns are rising about mines in the Strait of Hormuz, a key oil and gas shipping lane, IG analyst Tony Sycamore said in a note. That could slow the process of reopening the waterway and mean that relief comes more slowly for the oil market even after it is reopened.

“Even if an agreement is reached, it won’t deliver a flood of supply,” Sycamore said.

In other commodities, spot gold was down 0.8 per cent to US$4,498.89 an ounce. U.S. gold futures for August delivery fell 1.4 per cent to US$4,528.90.

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

The day range on the loonie was 72.33 US cents to 72.52 US cents in early trading. The Canadian dollar was down about 1.4 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.13 per cent to 99.04. The dollar was pegged at $1.3822.

The euro slid 0.12 per cent to US$1.1648. The British pound climbed 0.02 per cent to US$1.3458.

In bonds, the yield on the U.S. 10-year note was last up at 4.470 per cent.

China’s PMI

Japan’s capital spending and manufacturing PMI

Euro zone’s unemployment rate, private sector credit and manufacturing PMI

Germany’s retail sales

9:30 a.m. ET: Canada’s S&P Global Manufacturing PMI for May.

9:45 a.m. ET: U.S. S&P Global Manufacturing PMI for May.

10 a.m. ET: U.S. ISM Manufacturing PMI for May.

10 a.m. ET: U.S. construction spending for April. The Street expects a month-over-month increase of 0.2 per cent.

12 p.m. ET: Bank of Canada Senior Deputy Governor Carolyn Rogers appears before the House Standing Committee on Public Accounts.

With Reuters and The Canadian Press