Global markets were mixed as expectations for an imminent end to the Middle East conflict waned after the U.S. launched fresh attacks on Iran.

Wall Street futures were in positive territory as trading resumes after markets were closed yesterday for a holiday.

TSX futures pointed lower after Canada’s main stock index closed at a fresh record high yesterday.

On Wall Street, markets are watching earnings from AutoZone Inc., Elbit Systems Ltd. and Zscaler Inc.

“I’m a bit skeptical ... We keep being told there’s a deal that’s near, but what does the deal look like? That’s what’s really important. When’s the Strait of Hormuz going to open ... There’s a lot we don’t know,” said Joseph Capurso, a strategist at Commonwealth Bank of Australia.

Overseas, the pan-European STOXX 600 was down 0.28 per cent in morning trading. Britain’s FTSE 100 rose 0.64 per cent, Germany’s DAX fell 0.69 per cent and France’s CAC 40 gave back 1.06 per cent.

In Asia, Japan’s Nikkei closed 0.25 per cent lower, while Hong Kong’s Hang Seng slipped 0.02 per cent.

Brent crude oil rose after the U.S. military’s strikes in Iran added to uncertainty on whether a deal will be imminently reached to end the war and open up shipping flows through the Strait of Hormuz.

Global benchmark Brent futures were up 2.9 per cent to US$98.96 a barrel. West Texas Intermediate (WTI) crude futures were down 4.3 per cent from Friday’s close, at US$92.44. There was no WTI settlement yesterday due to the U.S. Memorial Day holiday.

“While differences between the parties have narrowed, any eventual peace deal would likely lead only to a gradual reopening, meaning the current tight supply outlook could take months to normalize,” said Ole Hansen at Saxo Bank.

In other commodities, spot gold was down 1.1 per cent to US$4,521.80 an ounce. U.S. gold futures for June delivery was unchanged at US$4,522.50.

The Canadian dollar was little changed against its U.S. counterpart.

The day range on the loonie was 72.37 US cents to 72.52 US cents in early trading. The Canadian dollar was down about 0.86 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.19 per cent to 99.05. The dollar was pegged at $1.3801.

The euro edged down 0.01 per cent to US$1.1641. The British pound declined 0.18 per cent to US$1.3480.

In bonds, the yield on the U.S. 10-year note was last down at 4.498 per cent.

Japan’s machine tool orders

8:15 a.m. ET: U.S. ADP National Employment Report estimate for May 9.

9 a.m. ET: U.S. S&P Cotality Case-Shiller Home Price Index for March. The Street is projecting a rise of 0.1 per cent from March and 1.2 per cent year-over-year.

9 a.m. ET: U.S. FHFA House Price Index for March. The consensus estimates are an increase of 0.1 per cent from March and 1.8 per cent year-over-year.

10 a.m. ET: U.S. Conference Board Consumer Confidence Index for May.

With Reuters and The Canadian Press