Global stock markets climbed as easing Middle East hostilities sent oil prices sharply lower and eased inflation worries ahead of a packed week of central bank meetings and earnings reports.

Wall Street futures pointed higher, with Dow futures up 0.85 per cent, S&P 500 futures up 0.87 per cent and Nasdaq futures up 1.49 per cent as of 4:25 a.m. ET.

TSX futures followed sentiment higher after Canada’s main stock index notched a small gain on Friday.

In Canada, investors are getting results from Celestica Inc., First Capital Realty Inc., Gibson Energy Inc. and Topaz Energy Corp.

On Wall Street, markets are watching earnings from AstraZeneca PLC, Nucor Corp., TFI International Inc. and Welltower Inc.

Iran said on Sunday it would halt its own attacks as long as the United States did the same, with the U.S. military reportedly concerned about dwindling supplies of ammunition.

“Net, it looks as if developments in the Middle East have moved in a positive direction over the weekend, adding some credibility to the notion that oil above $100 a barrel seems to induce de-escalatory behavior from both sides,” said Sally Auld, group chief economist at NAB.

Overseas, the pan-European STOXX 600 was up 0.76 per cent in morning trading. Britain’s FTSE 100 rose 0.41 per cent, Germany’s DAX gained 1.52 per cent and France’s CAC 40 advanced 0.73 per cent.

In Asia, Japan’s Nikkei closed 0.50 per cent higher, while Hong Kong’s Hang Seng jumped 0.98 per cent.

Oil prices tumbled after the U.S. and Iran paused strikes over the weekend.

Brent crude futures fell 5.9 per cent to US$91.08 a barrel. U.S. West Texas Intermediate crude was down 5.4 per cent at US$84.51 a barrel.

“The market seems to be forever seeking good news from an arena that really is not providing any,” said PVM analyst John Evans. “A stay of military strikes might seem an improvement, but it does not come with any guarantees that oil will soon flow from the area ... prices will only continue lower if high prices once again dent demand, not questionable mini-ceasefires.”

In other commodities, spot gold gained 0.9 per cent to US$4,089.03 an ounce, while U.S gold futures for August delivery rose 0.5 per cent to US$4,090.80.

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

The day range on the loonie was 70.88 US cents to 71.07 US cents in early trading. The Canadian dollar was up about 0.76 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, fell 0.20 per cent to 101.095. The dollar was pegged at $1.4106.

The euro rose 0.25 per cent to US$1.1399. The British pound gained 0.07 per cent to US$1.3332.

In bonds, the yield on the U.S. 10-year note was last down at 4.638 per cent.

8:30 a.m. ET: U.S. durable goods orders for June

10:30 a.m. ET: Bank of Canada market participants survey for the second quarter

With Reuters and The Canadian Press