Middle East Tensions Weigh on Global Markets as US Inflation Report Looms

Global markets were mixed yesterday following new attacks on shipping in the Middle East, which dimmed expectations for an end to the Iran war. Despite this, Wall Street futures are expected to open higher today after a mild inflation report from the United States.

The Canadian dollar strengthened against its U.S. counterpart, with a day range of 71.73 US cents to 71.88 US cents in early trading. The loonie has been up about 0.88% against the greenback over the past month.

Major markets were watching U.S. inflation data closely, as it could affect interest rates before the midterm elections. Carrell, head of multi-asset income at Schroders, said that a soft CPI projection would 'tee up a hold on interest rates.'