Global markets edged lower after efforts to end the ‌U.S.-Iran war hit an impasse, while investors awaited a slate of economic data for fresh clues on growth and the interest rate outlook.

Wall Street futures were muted with the Dow pointing lower.

TSX futures were in the red after Canada’s main stock market closed at another record high yesterday on energy share strength.

In Canada, investors are getting results from Constellation Software Inc., Franco-Nevada Corp., Denison Mines Corp., Cineplex Inc. and Pet Valu Holdings Ltd.

While tomorrow’s U.S. July consumer price report will not capture the most recent rise in energy costs, it could still prove instrumental in setting expectations for September’s Federal Reserve meeting, for which money markets show there is a 50/50 chance of a hike.

“We think the risks are skewed towards a hot print, which would probably drive a rebound ‌in rate expectations ​and, potentially, renewed worries about stagflation,” said ‌Jonas Goltermann, chief markets economist at Capital Economics.

Overseas, the pan-European STOXX 600 was down 0.06 per cent in morning trading. Britain’s FTSE 100 fell 0.11 per cent, Germany’s DAX declined 0.16 per cent and France’s CAC 40 retreated 0.24 per cent.

In Asia, Japan’s Nikkei was closed for a holiday, while Hong Kong’s Hang Seng declined 1.1 per cent.

Oil prices rose as hopes for ​a U.S.-Iran deal to end the war ‌and reopen the Strait of Hormuz faded after President Donald Trump demanded compensation for damages from Tehran.

Brent crude futures were up 2.4 per cent to US$89.86 a barrel. West ​Texas Intermediate (WTI) crude futures gained 2.7 per cent to US$84.35 a barrel.

“There appears to be a gulf, no ‌pun intended, ​between the U.S. and Iran ‌over what any agreement would actually look like,” said Tim Waterer, chief market ​analyst at KCM Trade.

“As a result, some of ⁠the optimism that built up last week is being unwound, giving ⁠oil prices a decidedly bid tone.”

In other commodities, spot gold was down 0.4 per cent to US$4,371.92 an ounce after hitting its highest level since June 5 earlier in the session. U.S. gold futures rose 0.3 per cent to US$4,430.80.

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

The day range on the loonie was 71.69 US cents to 71.80 US cents in early trading. The Canadian dollar was up about 0.92 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.04 per cent to 99.85. The dollar was pegged at $1.3931.

The euro slid 0.04 per cent to US$1.1539. The British pound fell 0.06 per cent to US$1.3499.

In bonds, the yield on the U.S. 10-year note was last up at 4.734 per cent.

6 a.m. ET: U.S. NFIB Small Business Economic Trends Survey for July.

8:15 a.m. ET: U.S. ADP National Employment Report Estimate for July 25.

8:30 a.m. ET: U.S. existing home sales for July. The Street is forecasting a month-over-month decline of 1.0 per cent.

With Reuters and The Canadian Press