Global markets climbed as investor optimism over robust earnings growth and enthusiasm over AI offset concern about another flare-up in Middle East tensions that boosted oil.

Wall Street futures pointed higher ahead of key jobs data on both sides of the border.

TSX futures were in positive territory after major North American markets closed down yesterday.

In Canada, investors are getting results from Algonquin Power & Utilities Corp., Emera Inc. and MDA Space Ltd.

On Wall Street, markets are watching earnings from Take-Two Interactive Software, Inc. and PPL Corp.

Traders are split over whether or not the U.S. Federal Reserve will raise rates next month, meaning today’s non-farm payrolls number could be instrumental in tipping the balance in one direction or another.

“With yields and inflation still the key risks for stocks, we expect Friday’s NFP to trade as a ’good news is bad news’ print,” said Michael Feroli, chief U.S. economist at JPMorgan, adding that a strong jobs number would reinforce higher-for-longer pricing and put upward pressure on rates.

Conversely, equities may respond positively to a soft payrolls report as yields ease and policy expectations shift toward a dovish path, he added.

Overseas, the pan-European STOXX 600 was up 0.48 per cent in morning trading. Britain’s FTSE 100 rose 0.61 per cent, Germany’s DAX gained 0.74 per cent and France’s CAC 40 advanced 0.32 per cent.

In Asia, Japan’s Nikkei closed 0.12 per cent lower, while Hong Kong’s Hang Seng climbed 0.54 per cent.

Oil prices turned lower amid further concerns surrounding the reopening of the Strait of Hormuz and potential Iranian bans and fines on vessels it deems hostile or in violation of proposed rules.

Brent crude futures were down 0.38 per cent to US$82.18 a barrel. West Texas Intermediate (WTI) futures declined 0.21 per cent to US$77.13.

Prices are reacting to Iran’s published draft plan for Hormuz transit conditions, said Rystad Energy analyst Lin Ye.

“That’s not the market pricing in a bad deal, it’s pricing in confirmation that whatever emerges is a managed/conditional corridor, not a restoration of normal flow,” she added.

In other commodities, spot gold was up 1.1 per cent to US$4,285.89 an ounce after hitting a seven-week high yesterday. Prices gained 6 per cent for the week. U.S. gold futures rose 1.1 per cent to US$4,344.90.

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

The day range on the loonie was 71.27 US cents to 71.38 US cents in early trading. The Canadian dollar was up about 0.97 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, slipped 0.03 per cent to 99.90. The dollar was pegged at $1.4020.

The euro rose 0.03 per cent to US$1.1529. The British pound slid 0.1 per cent to US$1.3441.

In bonds, the yield on the U.S. 10-year note was last down at 4.665 per cent.

China’s trade surplus, CPI and PPI

Japan’s household spending

Germany’s industrial production and trade surplus

8:30 a.m. ET: Canadian employment for July. The Street is expecting a month-over-month gain of 0.1 per cent (15,000 jobs) with the unemployment rate remaining at 6.5 per cent and average hourly wages up 3.3 per cent year-over-year.

8:30 a.m. ET: U.S. nonfarm payrolls for July. Consensus is a gain of 86,000 jobs with the unemployment rate staying at 4.2 per cent and average hourly wages up 0.3 per cent from June (and 3.5 per cent year-over-year).

10 a.m. ET: Canada’s Ivey PMI for July.

3 p.m. ET: U.S. consumer credit for June.

With Reuters and The Canadian Press