Global markets were muted as ​investors assessed developments in the U.S.-Iran negotiations and analysts ‌cautioned about renewed volatility from stretched AI valuations.

Wall Street futures were mixed after major North American markets closed lower yesterday on the extended tech selloff.

TSX futures were in the red as commodity prices eased.

In Canada, investors are getting results from AGF Management Ltd.

On Wall Street, markets are watching earnings from Micron Technology Inc. and Paychex Inc.

“Price action in markets over the last seven trading days has been alarming, not just when it falls, but also when it rises,” said ​Michael McCarthy, market analyst at Moomoo Securities Australia. “When markets ‌move so rapidly, in either direction, it’s a sign of instability.”

Overseas, the pan-European STOXX 600 was down 0.09 per cent. Britain’s FTSE 100 edged up 0.05 per cent, Germany’s DAX fell 1.07 per cent and France’s CAC 40 advanced 0.13 per cent.

In Asia, Japan’s Nikkei closed 0.88 per cent lower, while Hong Kong’s Hang Seng gained 0.33 per cent.

Oil prices fell to hit fresh four-month lows ‌on signs that more oil tankers are set to move out of the Strait of Hormuz.

Brent crude futures were down 1.6 per cent to US$75.84 a barrel. ⁠West Texas ​Intermediate (WTI) slid 1.5 per cent to US$72.10.

“While there are early encouraging ​signs of increased tanker activity, the market is ‌pricing in the broader scenario of Iranian oil re-entering the global market and the Strait of Hormuz normalizing,” said Tim Waterer, chief market analyst at KCM Trade.

In other commodities, spot gold dropped 0.9 per cent to US$4,071.28 an ounce. U.S. gold futures for August delivery declined 1.5 per cent to US$4,088.80.

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

The day range on the loonie was 70.22 US cents to 70.51 US cents in early trading. The Canadian dollar was down about 2.78 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.24 per cent to 101.65, after reaching a fresh 13-month high. The dollar was pegged at $1.4236.

The euro dropped 0.36 per cent to US$1.1342. The British pound dropped 0.3 per cent to US$1.3162.

In bonds, the yield on the U.S. 10-year note was last down at 4.485 per cent.

Germany’s business climate

7:15 a.m. ET: Bank of Canada senior governor Carolyn Rogers joins a panel at the Point Zero Forum in Zurich.

8:30 a.m. ET: Canada’s manufacturing sales for May.

8:30 a.m. ET: U.S. current account deficit for Q1.

10 a.m. ET: U.S. new home sales for May. The Street is expecting an annualized rate rise of 2.9 per cent.

1:30 p.m. ET: Bank of Canada’s Summary of Deliberations for June 10 decision is released

With Reuters and The Canadian Press