Global Markets Mixed Amid Shipping Attacks and US Inflation Data

The global stock markets were mixed as new attacks on shipping in the Middle East dimmed expectations for an end to the Iran war. This shift in sentiment pushed markets to focus on upcoming US inflation data later in the day.

Wall Street futures remained muted after the previous day's decline, while TSX futures were little changed following Canada's main stock market reaching another record close yesterday.

A number of Canadian companies are set to release their earnings results today, including Air Canada, CAE Inc., and Stantec Inc. On Wall Street, investors are watching Cisco Systems' quarterly report.

Schroders' Carrell noted that a reasonably soft CPI projection would likely lead the Federal Reserve to hold interest rates before the midterms.

The pan-European STOXX 600 index was little changed in morning trading, while Britain's FTSE 100 edged down 0.05%, and France's CAC 40 declined 0.25%. In Asia, Japan's Nikkei rose 0.83%, while Hong Kong's Hang Seng fell 0.83%.

Oil prices remained steady after attacks on two ships reinforced concerns about disruptions to Middle East supplies, despite swelling inventories of US crude. Brent futures were up 0.1% at $89 a barrel, and West Texas Intermediate (WTI) climbed 0.13% to $83.31.

Dorian Carrell, head of multi-asset income at Schroders, stated that their base case for a long time has been a gradual but messy de-escalation, which they expect will keep oil prices steady and maintain an energy-driven inflationary driver in markets.