Global markets were mixed in choppy trading after a short-lived tariff threat relief rally as investors assessed U.S. President Donald Trump’s ‍softer stance ​on Greenland.

Wall Street futures were in the red after major U.S. markets closed higher yesterday amid upbeat economic data.

TSX futures edged higher as commodity prices climbed.

“As we enter the second year of the Trump administration, it is increasingly clear ... that U.S. deals and agreements offer little guarantee of stability,” Ipek Ozkardeskaya, senior analyst at Swissquote, wrote in a note.

“New tariffs could be announced at any time, and they could be as ambitious as U.S. objectives themselves – regardless of whether they make sense, are legal, or are accepted by the rest of the world."

Overseas, the pan-European STOXX 600 was down 0.24 per cent in morning trading. Britain’s FTSE 100 edged up 0.02 per cent, Germany’s DAX was flat and France’s CAC 40 gave back 0.46 per cent.

In Asia, Japan’s Nikkei closed 0.29 per cent higher, while Hong Kong’s Hang Seng rose 0.45 per cent.

Oil prices rebounded from yesterday’s decline after ​Trump renewed threats against major ‍Middle Eastern producer Iran, raising concerns of military action that could disrupt supplies.

Brent crude futures for March rose 0.5 to US$64.35 ​a barrel. West Texas Intermediate (WTI) crude climbed 0.7 per cent to US$59.65 a barrel.

Trump told reporters aboard ⁠Air Force One the U.S. has an “armada” heading toward Iran but hoped he would not have to use it, as he renewed warnings to Tehran against killing protesters or restarting its nuclear program.

In other commodities, spot gold was up 0.21 per cent at US$4,923.80 an ounce after scaling a record US$4,967.03 earlier in ‍the session. U.S. gold futures for February delivery added 0.15 per cent to trade at US$4,920.50 an ounce.

The Canadian dollar was little changed against its U.S. counterpart.

The day range on the loonie was 72.45 US cents to 72.56 US cents in early trading. The Canadian dollar was down about 0.8 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, edged up 0.02 per cent to 98.38.

The euro slid 0.2 per cent to US$1.1732. The British pound gained 0.17 per cent to US$1.3524.

In bonds, the yield on the U.S. 10-year note was last down at 4.242 per cent.

The Bank of Japan earlier signalled its readiness to continue raising still-low borrowing costs against the backdrop of a politically charged atmosphere, with the country’s snap election next month.

“The BOJ has raised four of ‌its six inflation projections and indicated ‍that further rate hikes are likely if these forecasts are realized,” said David Chao, global market strategist for Asia-Pacific at Invesco in Singapore.

Japan CPI and PMI

Euro zone PMI: Business activity growth held steady this month as ​a weaker expansion in the dominant services ‍industry offset milder factory contraction, according to the survey, while price pressures picked up.

(8:30 a.m. ET) Canadian retail sales for November. The Street is projecting a gain of 1.2 per cent from October.

(8:30 a.m. ET) Canada’s manufacturing sales for December.

(9:45 a.m. ET) U.S. S&P Global PMIs for January.

(10 a.m. ET) U.S. University of Michigan Consumer Sentiment Index.

With Reuters and The Canadian Press