Global markets fell as oil prices rose above US$100 ​amid renewed Middle East tensions while rising bond yields continued ‌to weigh on sentiment.

Wall Street futures were in the red after major North American markets closed up yesterday, with the S&P 500 reaching a record high.

TSX futures followed sentiment lower.

In Canada, investors are getting results from Richelieu Hardware Ltd.

On Wall Street, markets are watching earnings from Levi Strauss & Co.

“In the very early stages of ​the fourth quarter, typically the best quarter of the year for ‌equity returns, markets are being driven by a confusing ‘stocks up, U.S. breadth down, yields up, oil down and up, and down’ narrative,” said Jeremy Batstone-Carr, an economist at Raymond James.

Overseas, the pan-European STOXX 600 was down 0.72 per cent in morning trading. Britain’s FTSE 100 declined 0.63 per cent, Germany’s DAX slid 1.13 per cent and France’s CAC 40 gave back 0.88 per cent.

In Asia, Japan’s Nikkei closed 0.92 per cent lower, while Hong Kong’s Hang Seng slid 0.62 per cent.

Oil prices steadied, with Brent ​futures holding above US$100 a barrel, as ‌investors weighed higher Gulf exports against ongoing supply risks from the Middle East conflict and a storm heading for oil-producing regions in the United States.

Brent ⁠crude futures ​rose 1.36 per cent to $102.00 a barrel. West Texas Intermediate (WTI) crude gained 0.68 per cent to US$90.05.

The market is likely to remain nervous about any potential supply disruptions, ING ​commodity strategists said, adding that Middle East ‌supply risks are still very real with continued attacks on ships.

In other commodities, spot gold fell almost 1 per cent to US$4,122.73 an ounce. ​U.S. gold futures dropped 0.9 per cent to US$4,149.00.

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

The day range on the loonie was 70.25 US cents to 70.40 US cents in early trading. The Canadian dollar was down about 2.93 per cent against the greenback over the past month. It traded at $1.4222 per US$1.

The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.44 per cent to 102.28.

The euro dropped 0.63 per cent to US$1.1190. The British pound fell 0.38 per cent to US$1.3225.

In bonds, the yield on the U.S. 10-year note was last up at 5.327 per cent.

2 p.m. ET: Release of minutes of the U.S. Federal Reserve’s latest policy meeting.

3 p.m. ET: U.S. consumer credit for August.

With Reuters and The Canadian Press