Global markets slid as fresh hostilities flared in the Middle East after U.S.-Iran peace talks stalled.

Wall Street futures were mixed after U.S. markets closed higher yesterday.

TSX futures pointed lower after Canada’s main stock market recorded a fresh record close yesterday.

In Canada, investors are getting results from Descartes Systems Group Inc.

On Wall Street, markets are watching earnings from CrowdStrike Holdings Inc., Broadcom Inc., Macy’s Inc. and Medtronic PLC.

“Last week ... the trajectory was towards some sort of MOU [memorandum of understanding] and markets were high on the belief that that was coming,” said Chris Weston, head of research at broker Pepperstone in Melbourne.

“Things are looking more precarious [now]. It does suggest that people are coming back to the negotiating table with less scope to get that done and I think we’re seeing some of those bets being unwound.”

Overseas, the pan-European STOXX 600 was down 0.32 per cent in morning trading. Britain’s FTSE 100 eased 0.3 per cent, Germany’s DAX fell 0.92 per cent and France’s CAC 40 gave back 0.2 per cent.

In Asia, Japan’s Nikkei was 2.5 per cent higher, closing above 68,000 for the first time on an AI-related rally, while Hong Kong’s Hang Seng gave back 1.56 per cent.

Oil prices rose as hostilities in the Middle East erupted anew and talks between Tehran and Washington showed little progress. 

Brent futures gained 2.2 per cent to US$98.09 a barrel, while West Texas Intermediate (WTI) crude climbed 2.4 per cent to US$96.02.

“The stalling in the U.S.-Iran negotiations and IEA warnings of critical global low stock levels are adding upward layers in risk premium in benchmark prices,” said Emril Jamil, a senior analyst for oil at LSEG.

In other commodities, spot gold fell 0.5 per cent to US$4,460.36 an ounce. U.S. gold futures for August delivery slipped 0.7 per cent to US$4,488.90.

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

The day range on the loonie was 72.14 US cents to 72.37 US cents in early trading. The Canadian dollar was down about 1.57 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, climbed 0.11 per cent to 99.33. The dollar was pegged at $1.3852.

The euro slid 0.146 per cent to US$1.1616. The British pound declined 0.1 per cent to US$1.3451.

In bonds, the yield on the U.S. 10-year note was last up at 4.486 per cent.

China, Japan and Euro zone’s services and composite PMI

8:30 a.m. ET: Canadian labour productivity for Q1.

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

9:45 a.m. ET: U.S. Global Services/Composite PMI for May.

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

10 a.m. ET: U.S. factory orders for April.

2 p.m. ET: U.S. Beige Book is released.

With Reuters and The Canadian Press