Global stocks rallied on Tuesday as the US and Mexico approached the deal to revise the North American Free Trade Agreement, but investors remained cautious as Canada could be excluded from the trading bloc.
The threat of a US protectionist policy has dampened global market sentiment for most of the year. The outcome of the Nafta Agreement is viewed by some investors as a guideline for President Trump's future dealings with China.
The Stoxx Europe 600 gained 0.1% in early European trade. In the US, futures offered 0.1% and 0.2% opening price gains for the S & P 500 and the
The technology-heavy Nasdaq rose above 8,000 on Monday for the first time, following a winning season in which some of the sector's giants, such as
beat the expectations of analysts. The S & P 500 also reached record highs.
The WSJ dollar index, which depicts the US dollar against a basket of currencies, was unchanged from the previous day. The Mexican peso, which initially participated in the news of the deal, and the Canadian dollar were flat against the dollar on Tuesday.
Most Asia-Pacific stock indices gained on Tuesday. The Japanese Nikkei Stock Average closed 0.1
The prospect that Mr. Trump could successfully negotiate new trade agreements is seen by investors as a hopeful sign that a major trade war is being avoided, analysts said. However, some asset managers were unconvinced after Mr. Trump said on Monday that Canada would be separated from the North American trading zone when needed.
Www.cosmetic-business.com//showarti…p?art_id=848 Dutch lender Rabobank 's senior market strategist told clients that "today' s announcement makes a new Nafta agreement more likely, but it" increases also the risk that agreement will not be reached with Canada Bilateral Agreements. "
In contrast, Mohammed Kazmi, a fund manager at UBP, believes that the risks of a trade-spa- nal weaken.
"We can see a Canadian deal coming through soon," he said. "What it does show is Trump, who's trying to make some quick profits before the next election, trying to distract the market by closing deals and supporting stock markets."
Many investors and analysts believe that it is the Stock markets outside the US are the ones that would reap most of the gains from Mr. Trump's conciliatory stance trading business. This summer, aggressive US foreign policy has pushed investors into the relative safety of US equities and bonds, while hampering foreign exchanges.
With economic growth and profits stronger there, "the US is top of the class and there is no way to avoid US assets," said Witold Bahrke, senior macro strategist at Nordea Asset Management. "And, moreover, you have these trade issues that compound the divergence between the US and the rest of the world."
In August, the US became the top equity region for international fund managers for the first time in five countries According to a monthly survey by Bank of America Merrill Lynch
the lira fell 1.5% against the US dollar in Turkey, after she fell heavily the day before. Many investors said that the country's currency crisis is far from over.
Crude crude oil rose 0.6% to $ 76.67 a barrel and gold rose 0.3% to $ 1,219.70 an ounce.
Write to Jon Sindreu at [email protected]