Before the Bell will pause for the holiday Monday and return on Tuesday.

Global markets retreated from recent highs as concerns about potential AI-driven disruptions kept investors cautious ahead of key U.S. inflation data.

Wall Street futures were in the red after major North American markets fell sharply yesterday.

TSX futures followed sentiment lower even as commodity prices recouped some losses.

Canadian and U.S. stock markets will be closed Monday for a holiday.

In Canada, investors are getting results from Enbridge Inc., TC Energy Corp., Cameco Corp. and Magna International Inc.

On Wall Street, markets are watching earnings from Colliers International Group Inc.

“The prevailing tone in markets is a rotation toward more defensive areas of the equity market and companies with steady, less cyclical and more predictable earnings,” said Chris Weston, head of research at Pepperstone.

“It is clear that investors are viewing developments in AI ... through a new lens, attempting to price a future that feels more uncertain and structurally disruptive than ‌before.”

Overseas, the pan-European STOXX 600 was down 0.34 per cent in morning trading. Britain’s FTSE 100 edged up 0.06 per cent, Germany’s DAX slid 0.16 per cent and France’s CAC 40 retreated 0.44 per cent.

In Asia, Japan’s Nikkei closed 1.21 per cent lower, while Hong Kong’s Hang Seng dropped 1.72 per cent.

Oil prices ​edged higher but were on track for a ​second weekly decline as concerns receded over ‌the risks of a U.S.-Iran conflict that could affect supply.

Brent crude oil futures rose 0.4 per cent to US$67.79 a barrel. West Texas Intermediate (WTI) crude gained 0.4 per cent to US$63.05 a barrel.

“The fact that prices did not extend significantly lower in the face of bearish headlines is noteworthy, suggesting that downside momentum is slowing in the near term,” said XS.com analyst Linh Tran.

In other commodities, spot gold was up 1 per cent ⁠at US$4,969.85 an ​ounce. U.S. gold futures for April delivery climbed 0.9 per cent to US$4,990.30 an ounce.

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

The day range on the loonie was 73.32 US cents to 73.55 US cents in early trading. The Canadian dollar was up about 2.18 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.14 per cent to 97.07.

The euro declined 0.15 per cent to US$1.1855. The British pound eased 0.04 per cent to US$1.3617.

In bonds, the yield on the U.S. 10-year note was last up at 4.125 per cent.

Euro zone’s real GDP and trade surplus

8:30 a.m. ET: Canada’s new motor vehicle sales for December. Estimate is a year-over-year decline of 8.5 per cent.

8:30 a.m. ET: U.S. CPI for January. Consensus is a rise of 0.3 per cent from December and up 2.5 per cent year-over-year.

With Reuters and The Canadian Press