Global markets climbed as renewed mediation efforts in the Middle East lifted sentiment, while investors looked ahead to corporate earnings that could prove pivotal for the AI market as it navigates ongoing pressures.

Wall Street futures were in positive territory after yesterday’s pullback on major North American markets.

TSX futures followed sentiment higher.

On Wall Street, markets are watching earnings from Capital One Financial Corp., Charles Schwab Corp., General Motors Co., Halliburton Co.. Hasbro Inc., Interactive Brokers Group Inc., Novartis AG and 3M Co.

“This looks more like a relief rally than an all-clear signal,” said Charu Chanana, chief investment strategist at Saxo. “The rebound can continue if oil stays contained and tech earnings validate AI spending, but both assumptions remain fragile.”

Overseas, the pan-European STOXX 600 was up 0.42 per cent in morning trading. Britain’s FTSE 100 rose 0.34 per cent, Germany’s DAX gained 0.4 per cent and France’s CAC 40 advanced 0.31 per cent.

In Asia, Japan’s Nikkei closed 3.26 per cent higher, while Hong Kong’s Hang Seng slipped 0.04 per cent.

Oil prices steadied as markets weighed reports of mediation efforts against fresh attacks exchanged by the U.S. and Iran as well as threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.

Brent crude futures rose 0.2 per cent to US$89.40 a barrel. West Texas Intermediate (WTI) crude were up 0.24 per cent to $82.68 a barrel. 

“There’s some hope of de-escalation between the U.S. and Iran. Reports are that mediators are proposing a 10-day ceasefire, which could put the memorandum of understanding back on track,” ING analysts said in a note, referring to the June interim deal.

In other commodities, spot gold rose 1.6 per cent to US$4,071.59 an ounce. U.S. gold futures for August delivery were up 1.5 per cent to trade at US$4,076.00.

The Canadian strengthened against its U.S. counterpart.

The day range on the loonie was 70.98 US cents to 71.15 US cents in early trading. The Canadian dollar was up about 1.09 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.03 per cent to 100.92. The dollar was pegged at $1.4059.

The euro rose 0.07 per cent to US$1.1425. The British pound was little changed at US$1.3430.

In bonds, the yield on the U.S. 10-year note was last down at 4.593 per cent.

UK employment data and Germany business conditions survey

8:15 a.m. ET: U.S. ADP employment report

With Reuters and The Canadian Press