Global stocks climbed as markets looked for signs of whether a shaky truce between the United States and Iran will be extended.

Wall Street futures were in positive territory after the S&P 500 notched a new record close yesterday.

TSX futures followed sentiment higher.

In Canada, bank earnings season kicks off with results from Bank of Montreal, Bank of Nova Scotia and National Bank of Canada.

As Stefanie Marotta reports, Canada’s biggest banks are set to post a round of resilient profits, bucking economic uncertainty and looming trade pressure ahead of talks to renew the USMCA.

In a press release this morning, Scotiabank said it is boosting its quarterly dividend to $1.14 a share, an increase of 4 cents. It also reported a rise in second-quarter profit.

BMO also announced a 4-cent dividend hike to $1.71 a share, along with higher quarterly profit.

On Wall Street, markets are watching earnings from Marvell Technology Inc., Salesforce Inc. and Snowflake Inc.

“Markets are sort of just putting [Middle East uncertainty] to the back of their mind,” said Michael Hewson, a senior financial analyst at iFOREX Europe.

“The new status quo is essentially continued uncertainty about a ceasefire, and until such times as things deteriorate really badly, they’re going to work on the basis that there’s going to be a resolution at some point.”

Overseas, the pan-European STOXX 600 was up 0.43 per cent in morning trading. Britain’s FTSE 100 gained 0.23 per cent, Germany’s DAX rose 0.67 per cent and France’s CAC 40 advanced 0.82 per cent.

In Asia, Japan’s Nikkei closed little changed, while Hong Kong’s Hang Seng fell 1.06 per cent.

Oil prices dropped as traders sought clarity on negotiations between Iran and the U.S. after renewed hostilities set back efforts to reopen the Strait of Hormuz.

Brent crude futures fell 3.4 per cent to US$96.20 a barrel, while West Texas Intermediate (WTI) crude lost 4.1 per cent to trade at US$89.98 a barrel.

In other commodities, spot gold was down 0.3 per cent at US$4,494.16 an ounce. U.S. gold futures for June delivery fell 0.2 per cent to US$4,492.50.

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

The day range on the loonie was 72.30 US cents to 72.45 US cents in early trading. The Canadian dollar was down about 1.04 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.09 per cent to 99.08. The dollar was pegged at $1.3830.

The euro advanced 0.06 per cent to US$1.1638. The British pound slipped 0.06 per cent to US$1.3439.

In bonds, the yield on the U.S. 10-year note was last down at 4.466 per cent.

China’s industrial profits

With Reuters and The Canadian Press