Global stocks took a breather following their weeks-long recovery run while investors awaited key economic data, trade developments and remarks from U.S. Federal Reserve chairman Jerome Powell.

Wall Street futures were in negative territory as markets looked to U.S. retail sales figures and earnings from Walmart for a check on the pulse of consumer sentiment.

TSX futures followed sentiment lower after Canada’s main stock index climbed to a three-month high yesterday.

In Canada, investors are getting results from South Bow Corp. and InterRent REIT.

On Wall Street, markets are watching earnings from Walmart Inc., Alibaba Group Holding ADR, Deere & Co.

“We’ve had a huge party, everyone’s hung over, and now we’re just recuperating and waiting for the next big party,” said Tony Sycamore, a market analyst at IG.

Overseas, the pan-European STOXX 600 was flat in morning trading. Britain’s FTSE 100 edged up 0.04 per cent, Germany’s DAX declined 0.29 per cent and France’s CAC 40 gave back 0.29 per cent.

In Asia, Japan’s Nikkei closed down just shy of 1 per cent, while Hong Kong’s Hang Seng slid 0.79 per cent.

Oil prices fell on expectations for a U.S.-Iran nuclear deal that could result in sanctions easing, while a surprise build in U.S. crude oil inventories last week heightened investor concerns about oversupply.

Brent crude futures were down 3 per cent to US$64.10 a barrel. West Texas Intermediate (WTI) crude futures dropped 3.3 per cent to US$61.10.

“Chased down by the crude build in the EIA Inventory Report, the move is accelerated by what appears to be a cooling of animosity in the US/Iran nuclear negotiations,” PVM Oil analyst John Evans said of oil prices.

In other commodities, spot gold dipped 0.8 per cent to US$3,154.16 after hitting its lowest since April 10 earlier in the session. U.S. gold futures slid 1 per cent to US$3,157.30.

The Canadian dollar was little changed against its U.S. counterpart.

The day range on the loonie was 71.47 US cents to 71.63 US cents in early trading. The Canadian dollar was down about 1.03 per cent against the greenback over the past month. 

The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.25 per cent to 100.79. 

The euro rose 0.31 per cent to US$1.1209. The British pound advanced 0.28 per cent to US$1.3298.

In bonds, the yield on the U.S. 10-year note was last down at 4.517 per cent ahead of the North American opening bell.

Alibaba has reported quarterly revenue that missed Wall Street estimates, as the Chinese e-commerce giant works on new strategies to keep consumers spending amid persistent economic weakness and global trade uncertainties.

Deere & Co. has cut the lower end of its annual profit forecast over softer demand for its tractors from farmers opting to rent machines instead.

UnitedHealth Group shares fell nearly 6 per cent in premarket trading after the Wall Street Journal reported that the U.S. Department of Justice was investigating the company for potential Medicare fraud.

Euro area and Britain releases first quarter GDP data and March industrial production.

Britain’s economy grew more strongly than expected at 0.7 per cent, up sharply from an increase of 0.1 per cent in the last quarter of 2024, official data showed.

8:15 am ET: Canadian housing starts for April. BMO expects a 5-per-cent increase to an annualized rate of 225,000

8:30 am ET: Canadian manufacturing sales and new orders for March. BMO forecasts a decline of 1.9 per cent and 2.5 per cent, respectively

8:30 am ET: Canadian wholesale trade for March. A decline of 0.3 per cent is forecast

8:30 am ET: Initial U.S. weekly jobless claims

8:30 am ET: U.S. retail sales for April. BMO expects a rise of 0.1 per cent

8:30 am ET: U.S. PPI final demand for April. A rise of 2.6 per cent is expected from a year earlier

8:40 am ET: U.S. Fed Chair Jerome Powell speaks on “framework review” in Washington, DC