Global stocks retreated amid renewed hostilities between Iran and the United States, and oil prices edged up, with investors also focused on upcoming U.S. inflation data that could influence the rates outlook.

Wall Street and TSX futures were in negative territory after the S&P 500, Nasdaq and TSX indexes ended lower on Tuesday. Dow futures were down 0.65 per cent, S&P 500 futures down 0.76 per cent and Nasdaq futures down 1.17 per cent, as of 5:29 a.m. ET.

In Canada, investors are getting results from Major Drilling Group International Inc. and North West Co. Inc.

On Wall Street, markets are watching earnings from Oracle Corp. after markets close.

“It’s an ongoing risk, although to a lesser extent,” said Fleura Shiyanova, fundamental analyst at Kepler Unigestion in Switzerland, of the latest clashes between the U.S. and Iran. “The risks are much more understood than they were at the beginning, but now the question is how long it will last.”

Overseas, the pan-European STOXX 600 was down 0.36 per cent in morning trading. Britain’s FTSE 100 gave back 0.47 per cent, Germany’s DAX lost 0.56 per cent and France’s CAC 40 declined 0.25 per cent.

In Asia, Japan’s Nikkei closed closed 1.89 per cent lower, while Hong Kong’s Hang Seng finished 0.64 per cent lower.

Oil prices were steady amid renewed U.S.-Iran hostilities.

Brent crude futures were up 0.27 per cent to US$91.70 a barrel, while U.S. West Texas Intermediate crude futures rose 0.26 per cent, to US$88.43 a barrel.

Global stock draws are underpinning prices, but lower Chinese crude oil imports and limited flows through the Strait of Hormuz are helping to keep a ceiling on them, PVM analyst Tamas Varga said. “Nonetheless, it is difficult to reconcile the current lack of anxiety with the perpetual conflict engulfing the world’s most pivotal oil-producing region,” he added.

In other commodities, spot gold was down 2.1 per cent at US$4,172.44 per ounce. U.S. gold futures for August delivery shed 2.1 per cent to US$4,195.60.

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

The day range on the loonie was 71.63 US cents to 71.82 US cents in early trading. The Canadian dollar was down about 1.58 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, fell 0.04 per cent to 99.845. The dollar was pegged at $1.3936.

The euro increased 0.10 per cent to US$1.1554. The British pound rose 0.07 per cent to US$1.3927.

In bonds, the yield on the U.S. 10-year note was last up at 4.535 per cent.

La Caisse de dépôt et placement du Québec and Fidelity Investments Canada are backing a $300-million funding round by financial technology company Nesto Inc., which is aiming to drastically reduce its mortgage underwriting time using artificial intelligence, The Globe’s Olivia Grandy and Sean Silcoff report.

China’s CPI and PPI for May.

8:30 a.m. ET: U.S. CPI for May. The Street is projecting a gain of 0.5 per cent from April and 4.2 per cent year-over-year.

9:45 a.m. ET: Bank of Canada’s policy announcement with press conference to follow at 10:30 a.m.

2 p.m. ET: U.S. budget balance for May.

With Reuters and The Canadian Press