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U.S. Stock Futures, Loonie, Peso Advance on Trade: Markets Wrap

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  • 2 months ago
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U.S. equity futures advanced along with the currencies of Canada and Mexico as negotiators agreed to preserve a three-way trade bloc. There was little follow-through to other markets, with Asian trading thinned by holidays, and the yen weakening.

On the Stoxx Europe 600 index, declines in travel shares largely offset gains in technology and chemicals companies. Italy’s government bonds extended their slide from last week as uncertainty persisted over a budget accord. In Japan, the blue-chip Nikkei 225 Stock Average closed at its highest level in almost 27 years. Contracts on the S&P 500 indicated the index will add to its advance after the best quarter since 2013. Oil gained on concern over a slowdown in U.S. drilling. Treasury 10-year yields ticked higher, to 3.07 percent.

A measure of calm returned to markets after American and Canadian representatives announced a trade deal to be known as the U.S. Mexico Canada Agreement, revamping the old Nafta framework. The move sent Canada’s loonie to its strongest since May and is the latest feather in the cap for U.S. trade negotiator Robert Lighthizer, who has advocated a tough line towards China, compared with Treasury Secretary Steven Mnuchin.

In Asia, volumes were below normal in a number of markets Monday, with Labor Day in Australia, Hong Kong shut and China out through Oct. 7.

Source : Bloomberg