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US-Mexico Trade Agreement in Focus



Overnight stocks rose higher on Wall Street. The S & P 500 gained 0.8 percent to close at 2,896.74 – another record high. The Nasdaq Composite also finished the trading day up 0.9 percent to an all-time high of 8,017.90. The Dow Jones Industrial Average rose 259.29 points to close at 26,049.64

On Monday, the US and Mexico announced that after months of negotiations between the two countries, an agreement had been reached on the future of the North American Free Trade Agreement. The new agreement, which President Donald Trump calls the United States-Mexico Trade Agreement, is expected to last 16 years and be reviewed every six years until approved by US Representative Robert Lighthizer] "The risk sentiment was transmitted overnight with the David de Garis, a senior economist at National Australia Bank, said in a morning note, "The US and Mexico have agreed on a trade agreement to replace NAFTA." Other issues that go beyond the automotive sector include: have been solved. "

Other economists, however, warned that the US-Mexico trade agreement might not be good for America's continued trade with China

In general, it is safer to consider the recent deal as one that the US is purely bargaining in a single note, economists Robert Carnell and Prakash Sakpal of ING Asia Pacific said, "As far as China and Asia are concerned, this new Mexico deal does not solve anything. In fact, it strengthens the US position to play hard with China. This does not look good for the region, "they added.

The US dollar index, which tracks the greenback against a basket of currencies, was 94.829 HK / SIN at 9:45 am

The Japanese Yen slipped against the dollar at 1

11.26 and the Australian dollar traded at $ 0.7337 at 9:46 pm HK / SIN.

In other currency news, China's central bank raised its official yuan mid-point by nearly 15 months to 6.8052 per dollar Investors are watching the Chinese currency closely following the recent change in the People's Bank of China's policy.

Oil prices rose 0.21 percent, reflecting Wall Street performance and news of the US-Mexico trade agreement at $ 76.37 a barrel, US West Texas Intermediate Crude Futures rose 0.1% to $ 68.94 a barrel.

– Reuters contributed to this report.


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