Global markets were mixed in nervous trading as a selloff in AI-related stocks deepened on fears that higher interest rates will make it harder for companies to fund AI investments.

Wall Street futures diverged, with the tech-heavy Nasdaq down more than 1 per cent after yesterday’s hotter-than-expected U.S. inflation reading.

TSX futures pointed higher after Canada’s main stock exchanged closed lower yesterday.

On Wall Street, markets are watching earnings from Taiwan Semiconductor Manufacturing Company Ltd., Charles Schwab Corp., Prologis Inc., Bank of New York Mellon Corp., U.S. Bancorp and PNC Financial Services Group Inc.

“The selloff in Asia looks less like a sudden deterioration in technology fundamentals and more like a repricing of the cost of capital,” said Charu Chanana, chief investment strategist at Saxo Bank in Singapore.

“Investors are not questioning whether AI demand exists,” she said. “They are increasingly ​questioning what price they should pay for that growth when interest rates are high, volatile and ‌potentially moving higher again.”

Overseas, the pan-European STOXX 600 was down 0.14 per cent in morning trading. Britain’s FTSE 100 climbed 0.45 per cent, Germany’s DAX declined 0.36 per cent and France’s CAC 40 climbed 0.27 per cent.

In Asia, Japan’s Nikkei tumbled 4.9 per cent, while Hong Kong’s Hang Seng closed 1.03 per cent lower.

Oil prices eased as potential ​U.S. steps to ease restrictions on ‌Russia’s “shadow fleet” tankers soothed price concerns, but attacks on ships in the Middle East and Ukrainian strikes on Russian energy infrastructure limited the decline.

Brent crude futures dropped ⁠1.96 per cent to US$104.00 ​a barrel, while West Texas Intermediate (WTI) crude futures slid 0.29 per cent to US$94.81.

“The ongoing conflict between Saudi Arabia and the Houthis is keeping a geopolitical premium in oil markets but energy infrastructure has not been attacked in the last several days,” MUFG analysts said in a note.

In other commodities, spot gold rose 1.2 per cent to US$4,156.11 an ounce. U.S. gold futures for December delivery gained 1.7 per cent ​to US$4,177.80.

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

The day range on the loonie was 70.21 US cents to 70.45 US cents in early trading. The Canadian dollar was down about 1.51 per cent against the greenback over the past month. It traded at $1.4204 per US$1.

The U.S. dollar index, which weighs the greenback against a group of currencies, fell 0.51 per cent to 102.03.

The euro gained 0.49 per cent to US$1.1215. The British pound advanced 0.44 per cent to US$1.3253.

In bonds, the yield on the U.S. 10-year note was last down at 5.084 per cent.

Euro area industrial production for August. France CPI for September. U.K. GDP, trade deficit and industrial production

6 a.m. ET: U.S. Conference Board CEO confidence index for the fourth quarter

8:30 a.m. ET: U.S. initial jobless claims

8:30 a.m. ET: U.S. retail sales for September. Consensus is for a monthly rise of 0.3 per cent

8:30 a.m. ET: U.S. producer price index final demand. Consensus is for a year over year rise of 5.5 per cent

8:30 a.m. ET: Canada manufacturing sales for August and new orders for August. BMO expects a rise of 1.1 per cent, and a decline of 2 per cent, respectively

8:30 a.m. ET: Canada wholesale trade for August

8:30 a.m. ET: Canada new motor vehicle sales for August. They are expected by BMO to be up 5.5 per cent year over year.

10 a.m. ET: U.S. business inventories

11:30 p.m. ET: IMF fireside chat with U.S. Federal Reserve chairman Kevin Warsh in Bangkok

With Reuters and The Canadian Press