Global markets headed for a second straight week of gains as investors took comfort from signs the U.S. and China were prepared to pull back from their trade war.

Wall Street futures were mixed after major U.S. indexes extended their rally yesterday with a solid boost from technology shares.

TSX futures pointed lower after technology stocks also boosted Canada’s main stock market yesterday to its highest close since April 2.

On Wall Street, markets are watching earnings from Colgate-Palmolive Co. and AbbVie Inc.

“The peak in terms of threatened tariff rates is likely behind us,” said Eli Lee, chief investment strategist at Bank of Singapore.

“In terms of the U.S.-China standoff, both sides have indicated they would not raise rates beyond current levels.”

Overseas, the pan-European STOXX 600 was up 0.3 per cent in morning trading. Britain’s FTSE 100 rose 0.1 per cent, Germany’s DAX gained 0.61 per cent and France’s CAC 40 advanced 0.59 per cent.

In Asia, Japan’s Nikkei closed 1.9 per cent higher, while Hong Kong’s Hang Seng climbed 0.32 per cent.

Oil prices fell and were set for a weekly decline of more than 2 per cent on the back of oversupply concerns and uncertainty regarding tariff talks between the U.S. and China.

Brent crude futures dropped 41 US cents to US$66.14 a barrel, falling 2.6 per cent so far for the week. West Texas Intermediate (WTI) crude slid 36 US cents to US$62.43 a barrel, having declined 3 .5per cent for the week.

“Traders now view further (crude price) gains as unlikely in the short term due to the continued trade war among top global consumers and speculation that OPEC+ may accelerate production hikes from June,” Saxo Bank analyst Ole Hansen said.

In other commodities, spot gold fell 1.5 per cent to US$3,299.69 an ounce. U.S. gold futures shed 1.1 per cent to US$3,310.20.

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

The day range on the loonie was 71.97 US cents to 72.22 US cents in early trading. The Canadian dollar was up about 3.1 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, advanced 0.28 per cent to 99.66.

The euro declined 0.34 per cent to US$1.1352. The British pound slid 0.29 per cent to US$1.3301.

In bonds, the yield on the U.S. 10-year note was last down at 4.307 per cent ahead of the North American opening bell.

(8:30 a.m. ET) Canadian retail sales for February. Consensus is a month-over-month decline of 0.4 per cent.

(8:30 a.m. ET) Canada’s manufacturing sales for March.

(10 a.m. ET) U.S. University of Michigan Consumer Sentiment Index.

With Reuters and The Canadian Press