Global markets steadied with European shares moving higher, but investor caution capped gains at the start of a week loaded with big central bank decisions and economic data.

Wall Street futures pointed to a recovery from last week’s selloff: Dow futures were up 0.48 per cent, S&P 500 futures rose 0.48 per cent and Nasdaq futures were 0.47 per cent higher as of 6:25 a.m. ET.

TSX futures followed sentiment higher.

“The unwind in the AI-capex trade weighed on global risk appetite, and in thin year-end liquidity those moves tend to travel quickly across regions,” said Marc Velan, head of investments at Lucerne Asset Management in Singapore.

Overseas, the pan-European STOXX 600 was up 0.8 per cent in morning trading. Britain’s FTSE 100 rose 0.9 per cent, Germany’s DAX gained 0.49 per cent and France’s CAC 40 advanced 1.05 per cent.

In Asia, Japan’s Nikkei closed 1.31 per cent lower, while Hong Kong’s Hang Seng fell 1.34 per cent.

Oil prices held steady as investors balanced supply disruptions linked to escalating U.S.-Venezuela tensions with oversupply concerns and the impact of a potential Russia-Ukraine peace deal.

Brent crude futures were up 0.25 per cent at US$61.27 a barrel. West Texas Intermediate (WTI) crude was at US$57.59 a barrel, up 0.26 per cent.

Both contracts slid more than 4 per cent last week, weighed down by expectations of a surplus in 2026.

“The grind lower in oil prices and the achieving of month-to-date lows across the major futures complex last week might have seen more negative pricing if it were not for the upping of the ante by the United States with regard to Venezuela,” said PVM analyst John Evans.

In other commodities, spot gold rose 1 per cent to US$4,343.96 an ounce. U.S. gold futures gained 1.2 per cent to US$4,377.80 an ounce.

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

The day range on the loonie was 72.57 US cents to 72.69 US cents in early trading. The Canadian dollar was up about 2 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.08 per cent to 98.32.

The euro gained 0.04 per cent to US$1.1747. The British pound climbed 0.09 per cent to US$1.3384.

In bonds, the yield on the U.S. 10-year note was last down at 4.171 per cent.

China retail sales, industrial production and fixed asset investment

Euro zone industrial production

5 a.m. ET: Canada’s existing home sales and average prices for November. Home sales fell by 10.7 per cent from a year earlier and dropped 0.6 per cent month-over month. Estimates were for a year-over-year decline of 11 per cent.

5 a.m. ET: Canada’s MLS Home Price Index for November. Estimate is a year-over-year drop of 3.5 per cent.

8:15 a.m. ET: Canadian housing starts for November. Estimate is an annualized rate rise of 11.7 per cent.

8:30 a.m. ET: Canadian CPI for November. The Street expects gains of 0.1 per cent from October and 2.3 per cent year-over-year.

8:30 a.m. ET: Canada’s manufacturing sales and new orders for October. Estimates are month-over-month declines of 1.1 per cent and 1.5 per cent, respectively.

8:30 a.m. ET: U.S. Empire State Manufacturing Survey for December.

10 a.m. ET: U.S. NAHB Housing Market Index for December.

With Reuters and The Canadian Press