Global markets steadied after the week’s reignition of Middle East hostilities and heavy selling of AI chipmakers.

Wall Street futures were mixed, with the Dow dipping lower in choppy action.

TSX futures edged down after Canada’s main stock market suffered its biggest drop in a month yesterday.

In Canada, investors are getting results from Aritzia Inc. and Richelieu Hardware Ltd.

On Wall Street, markets are watching earnings from PepsiCo Inc.

“At this stage, the market still appears skewed towards the view that the [Middle East] conflict ultimately de-escalates, and negotiations resume around the memorandum of understanding,” said Chris Weston, head of research at Pepperstone.  

“Nevertheless, traders understand the need to remain open-minded. The situation remains highly fluid, and conviction around timing is exceptionally difficult.”

Overseas, the pan-European STOXX 600 was up 0.19 per cent in morning trading. Britain’s FTSE 100 fell 0.69 per cent, Germany’s DAX advanced 0.22 per cent and France’s CAC 40 rose 0.25 per cent.

In Asia, Japan’s Nikkei closed 1.38 per cent higher, while Hong Kong’s Hang Seng declined 0.7 per cent.

Oil prices were little changed as markets eyed the impact of fresh U.S. strikes on Iran, which could hinder progress on talks to end their war and allow for the full reopening of the key Strait of Hormuz.

Brent crude futures rose 0.1 per cent to US$78.10 a barrel. West Texas Intermediate (WTI) crude futures were flat at US$73.52 a barrel.

The latest strikes, which the U.S. said were in response to Tuesday’s attack on three cargo ships in the Strait of Hormuz, came hours after President Donald Trump said an interim ceasefire with Iran was “over.”

“Traders are now reassessing the situation, especially as things are very much up in the air regarding oil flows through the Strait of Hormuz,” said Tim Waterer, chief market analyst at KCM Trade.

In other commodities, spot gold was up 0.8 per cent to US$4,106.82 an ounce. U.S. gold futures for August delivery gained 0.8 per cent to US$4,116.40.

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

The day range on the loonie was 70.46 US cents to 70.67 US cents in early trading. The Canadian dollar was down about 1.5 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, eased 0.03 per cent to 100.96. The dollar was pegged at $1.4180.

The euro rose 0.11 per cent to US$1.1429. The British pound advanced 0.14 per cent to US$1.3406.

In bonds, the yield on the U.S. 10-year note was last up at 4.578 per cent.

China’s CPI, PPI, aggregate yuan financing and new yuan loans

Japan’s machine tool orders

8:30 a.m. ET: U.S. initial jobless claims for week of July 4.

10 a.m. ET: U.S. existing home sales for June.

With Reuters and The Canadian Press