[ad_1]
Monday's market minute
- US equity futures increase after the White House authorities sign a new agreement between NAFTA and Canada, preventing the possibility of tariffs on a trade annual $ 1.2 trillion.
- Shares in Asia stagnate as investors record the cost of trade disputes between the United States and China, but the new NAFTA agreement strengthens equities in Tokyo as Chinese markets remain closed for the holidays of the week of gold.
- European equities have opened more, although the current fiscal crisis in Italy is holding back gains in the region and increasing yields on government bonds.
- World oil prices continue to rise despite Trump's call to Saudi King Salman as traders prepare for next month's sanctions on selling Iranian crude.
Snapshot of the market
US futures markets surged Monday, setting the Dow for a potential 200-point gain, after White House trade officials reached an agreement with Canada to reorganize the North Free Trade Agreement. American every year.
The US-Mexico-Canada Agreement (USMCA), concluded only a few hours before midnight, to allow outgoing Mexican President Enrique Peña Nieto to sign it before the end of the year. a major concession from Canada on access to its dairy market, but also a decline in the US representative to trade, Robert Lighthizer, who agreed to maintain a dispute settlement group with the largest trading partner in the world. ;America.
A host of other details surrounding the deal and its impact on issues such as the origins of the automotive supply chain, the tariffs for steel and aluminum and the contentious issue of timber trade between the United States and Canada still has a significant risk related to tariffs for the global financial markets before the last months of the year.
US equity futures skyrocketed with Dow Jones Industrial Average contracts
Shares of Tesla Inc. (TSLA) surged on Monday, after Eonon Musk agreed to settle fraud charges against the Securities and Exchange Commission over the weekend, which will allow him to remain CEO of the company. He founded. he is obliged to leave his position as chairman of the board of directors.
Tesla shares were 15.4% higher on Monday before the markets opened, with an opening price of $ 305,495 each, which would make the stock close to the year about $ 52 billion.
The US dollar index, which tracks the greenback versus a basket of six global currencies, was 0.1% lower at 95.17, while yields on 10-year US Treasury bonds slightly increased to 3.085%.
The Canadian dollar hit a record high of 1.2818 in four months against the greenback as a result of the announcement of the deal, while the Mexican peso rose 0.85% to hit a seven-week high at $ 18.50.
However, equities in Asia weakened during the session as investors became increasingly concerned that stalled trade talks between the US and China would continue to affect growth prospects for the second largest economy. World.
This view was supported by weekend data showing that manufacturing activity in China had fallen in May, although the breakthrough in NAFTA negotiations could help domestic actions to continue.
Japan's Nikkei 225 also advanced 0.52% to close at a new 27-year high, despite a significant drop in business confidence over the last three quarters, the worst future trading relationship with the United States .
European equities were also mixed at the start of the session, but rose thanks to gains in the German auto sector, which offset declines in Italy and the United Kingdom, where investors continued the bond markets and led the markets. Brexit uncertainty
Stoxx Europe 600 was up 0.3% at the start of trading, while the DAX gained 0.57% and the FTSE 100 gained 0.1%.
World oil prices were also up on Monday, bringing crude to new four-year highs, despite a weekend call between President Donald Trump and King Salman of Saudi Arabia. the sale of Iranian crude, third producer of OPEC.
Brent contracts for delivery in November, the global benchmark, were 25 cents higher at $ 82.98 a barrel in early European trade, while November WTI contracts were more closely tied to US prices.
Source link
