Global stocks fell after a strong end to November as a bout of risk aversion swept through markets even as U.S. rate-cut optimism remained intact.

Wall Street futures were in negative territory after major North American markets closed out the month higher. Dow futures were down 0.4 per cent, S&P 500 futures declined 0.52 per cent, and Nasdaq futures were 0.67 per cent lower at 4 a.m. ET.

TSX futures followed sentiment lower.

Tomorrow marks the start of bank earnings season, with Bank of Nova Scotia to be the first to release results. As banking reporter Stefanie Marotta reports, Canada’s biggest banks are expected to post a boost in earnings even as the U.S. trade war and economic uncertainty weigh on borrowing among consumers.

“There’s no single headline driving today’s risk-off tone,” said Saxo’s chief investment strategist Chaur Chanana.

“At the same time, weak China PMIs have revived stimulus hopes, which is why Hong Kong stocks are bucking the ... decline.”

Overseas, the pan-European STOXX 600 was down 0.48 per cent in morning trading. Britain’s FTSE 100 edged down 0.08 per cent, Germany’s DAX dropped 1.36 per cent and France’s CAC 40 gave back 0.75 per cent.

In Asia, Japan’s Nikkei closed 1.89 per cent lower, while Hong Kong’s Hang Seng rose 0.67 per cent.

Oil prices climbed after OPEC+ members reaffirmed a plan to hold output steady and as the Caspian Pipeline Consortium halted exports after a major drone attack and U.S.-Venezuela tensions raised concerns about supply.

Brent crude futures advanced 2.02 per cent to US$63.64 a barrel. West Texas Intermediate (WTI) crude gained 2.17 per cent to US$59.82.

“For some time, the narrative has centered on an oil glut, so OPEC+’s decision to maintain its production target provided some relief and helped stabilize expectations for supply growth in the coming months,” LSEG senior analyst Anh Pham said.

In other commodities, spot gold was up 0.6 per cent at US$4,255.04 an ounce, its highest since Oct. 21. U.S. gold futures for December delivery gained 0.8 per cent to US$4,290.40.

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

The day range on the loonie was 71.46 US cents to 71.61 US cents in early trading. The Canadian dollar was up about 0.53 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, slid 0.2 per cent to 99.26.

The euro advanced 0.27 per cent to US$1.1629. The British pound declined 0.08 per cent to US$1.3223.

In bonds, the yield on the U.S. 10-year note was last up at 4.045 per cent.

China PMI: The world’s largest manufacturer saw factory activity slipped back into contraction, a private-sector PMI showed, a day after Beijing’s official measure showed activity falling for the eighth consecutive month albeit at a slower pace.

Japan’s PMI showed new orders continued to decline, stretching the downturn to two-and-a-half years. Official data also showed Japanese corporate spending on factories and equipment rose 2.9 per cent in July-September compared with a year earlier, slowing from the previous quarter.

Euro zone manufacturing activity slipped back into contraction territory in November on weakening demand that forced firms to cut jobs at the quickest rate in seven months.

9:30 a.m. ET: Canada’s S&P Global Manufacturing PMI for November.

9:45 a.m. ET: U.S. S&P Global Manufacturing PMI for November.

10 a.m. ET: U.S. ISM Manufacturing PMI for November.

Also: Canadian and U.S. auto sales for November.

With Reuters and The Canadian Press