LONDON (AP) — Confirmation that the U.S. and Canada secured agreement on revising their trade pact shored up global stock markets Monday at the start of a busy data week that culminates with key monthly…
LONDON (AP) — Confirmation that the U.S. and Canada secured agreement on revising their trade pact shored up global stock markets Monday at the start of a busy data week that culminates with key monthly U.S. employment figures.
KEEPING SCORE: In Europe, Germany’s DAX was up 0.5 percent at 12,309 while the CAC 40 in France advanced 0.3 percent to 5,507. Britain’s FTSE 100 was 0.1 percent higher at 7,519. Wall Street was poised for solid gains at the open with Dow futures and the broader S&P 500 futures up 0.6 percent.
NAFTA REVISED: Canada agreed to a revamped free trade deal with the United States and Mexico late Sunday after weeks of negotiations. The deal reached just before a U.S.-imposed midnight deadline will be called the United States-Mexico-Canada Agreement, or USMCA. It replaces the 24-year-old North American Free Trade Agreement. The agreement gives U.S. farmers greater access to the Canadian dairy market, but keeps a NAFTA dispute-resolution process the U.S. opposed. It also offers Canada protection if Trump imposes tariffs on cars, trucks and auto parts imported into the United States. President Donald Trump called it a “great deal,” tweeting that it “solves the many deficiencies and mistakes in NAFTA.”
ANALYST TAKE: “While the acronym may not roll off the tongue quite as easily as its predecessor NAFTA, the USMCA has been warmly greeted by the markets and is a welcome development on the trade front,” said David Cheetham, chief market analyst at XTB, an online trader.
JAPAN TANKAN: A key quarterly economic survey by the Bank of Japan showed that sentiment among large manufacturers dipped two points to 19, as worries grow about global trade tensions. The “tankan” survey, released Monday, marked the third straight quarter of decline.
BUSY WEEK: Traders will have a lot of economic data to digest this week, including a monthly U.S. manufacturing report later Monday from the Institute for Supply Management. The week ends with September’s nonfarm payrolls data which could alter expectations about the pace at which the U.S. Federal Reserve raises interest rates next year.
THE DAY IN ASIA: Japan’s benchmark Nikkei 225 gained 0.5 percent to 24,245.76. Australia’s S&P/ASX 200 lost 0.6 percent to 6,172.30. South Korea’s Kospi gave up 0.2 percent to 2,338.88, while India’s Sensex surged 0.8 percent to 36,526.14. Shares were mixed in Southeast Asia. Markets in Hong Kong and the Chinese mainland were closed for National Day holidays.
ENERGY: Benchmark U.S. crude picked up 25 cents to $73.50 while Brent crude, used to price international oils, added 18 cents to $82.91 per barrel in London.
CURRENCIES: The euro was flat at $1.16 while the dollar rose 0.3 percent to 113.86 yen.