Global markets turned lower as concerns over inflation and rising government debt drove Treasury yields to multi-decade highs, while blowout results from Micron ⁠lifted the ​chip stocks.

Wall Street futures were mixed after the Dow and the S&P 500 closed down yesterday, following a raft of economic data releases.

TSX futures were in the red after Canada’s main stock exchange closed lower yesterday.

On Wall Street, markets are watching earnings from Accenture PLC, Nike Inc. and McCormick & Co. Inc.

Yesterday’s “softer-than-expected PCE numbers – though inflation remains above the Federal Reserve’s 2-per-cent target and still requires attention – helped cool Fed rate hike expectations,” Ipek Ozkardeskaya, senior analyst at Swissquote, wrote in a note.

But “longer-maturity yields kept climbing despite the soft inflation data – investors were probably factoring in the strong growth numbers and big government spending. As a result, the US 10-year yield went straight up.”

Overseas, the pan-European STOXX 600 was down 1.18 per cent in morning trading. Britain’s FTSE 100 declined 1.57 per cent, Germany’s DAX gave back 0.72 per cent and France’s CAC 40 slid 1.32 per cent.

In Asia, Japan’s Nikkei closed 3.3 per cent higher, riding a wave of AI optimism fuelled by Micron earnings. Hong Kong’s Hang Seng was closed for a holiday.

Oil prices rose after China suspended oil products exports, potentially tightening fuel markets already coping with supply shortages globally, while investors continued to assess renewed diplomatic efforts to end the U.S.-Iran war.

Brent crude ⁠futures were ​up 2.4 per cent to $100.40 a barrel, while West Texas Intermediate (WTI) crude rose 1.86 per cent to $92.10 a barrel.

Prices remained volatile in the session, with both the benchmarks dropping more than 1 per cent in earlier trading, but recovered ​losses.

Chinese refiners have suspended exports of oil products to regions beyond Hong Kong and Macau until further notice, four people briefed on the matter said on Thursday, a move that will further crimp war-constrained fuel markets.

“The Chinese export ban suggests concerns about domestic product availability,” UBS analyst Giovanni Staunovo said, adding that it remains to be seen whether the measures will support higher crude imports after recent drawdowns in Chinese crude and fuel stocks.

In other commodities, spot gold was little ​changed at US$4,155.60 an ounce. U.S. gold futures for December delivery held steady at US$4,185.50.

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

The day range on the loonie was 70.12 US cents to 70.36 US cents in early trading. The Canadian dollar was down about 3.19 per cent against the greenback over the past month. It traded at $1.4249 per US$1.

The U.S. dollar index, which weighs the greenback against a group of currencies, advanced 0.45 per cent to 101.91.

The euro dropped 0.45 per cent to US$1.1280. The British pound fell 0.42 per cent to US$1.3208.

In bonds, the yield on the U.S. 10-year note was last up at 5.305 per cent.

Yields on 10-year notes and 30-year bonds hit their highest since 2002, at 5.32 per cent and 5.66 per cent, respectively, a day after benchmark Treasuries logged their worst quarter since 1994.

Japan machine tool orders and manufacturing PMI

Euro zone jobless rate and manufacturing PMI

8:30 a.m. ET: U.S. initial jobless claims for week of Sept. 26. Estimate is 200,000, an increase of 3,000 from the previous week.

8:30 a.m. ET: U.S. Revelio Public Labour Statistics for September.

9:30 a.m. ET: Canada’s S&P global manufacturing PMI for September.

9:45 a.m. ET: U.S. S&P global manufacturing PMI for September.

10 a.m. ET: U.S. ISM manufacturing PMI for September.

10 a.m. ET: U.S. construction spending for August. Consensus is a month-over-month rise of 0.1 per cent.

3:05 p.m. ET: Bank of Canada Senior Deputy Governor Carolyn Rogers speaks in Victoria.

With Reuters and The Canadian Press