The New NAFTA will not Improve US-China Tensions
On Tuesday afternoon Asia markets continued broadly to be on the bearish mode while relations between the U.S. and China seemed to worsen.
South Korea’s Kospi slid notably, to trade down by about 0.70%, despite data pointing the country’s year-on-year output to be higher than the estimates.
ASX 200 also extended its slide, dropping by 0.77% and as most of the country’s banks continued to sustain losses. Shares of AMP went down further to trade down by about 2.23%
Hang Seng index too marked farther declines, slipping about1.64% on its opening day of the week.
The Nikkei 225 over in Japan, however, recovered to the positive area to trade up by about 0.27% in the afternoon, while the Topix was higher by 0.57%.
Dow rises nearly 200 points
On the opening day of the 4th quarter Stocks ended higher as investors supported the news of Canada entering a trade deal with the United States and Mexico.
The S&P 500 increased by about 0.4% to 2,924.40, driven by profits in energy, industrials shares, and materials. On Monday the Dow Jones Industrial Average climbed from 192.90 points to 26,651.21 while Boeing and Chevron outperformed. Boeing, a stock that is susceptible to trade news, rose 2.8%. The Nasdaq Composite closed 0.1% below at 8,037.30, but, as drops in Intel and Facebook capped profits in tech.
Shares of Ford and General Motors improved 0.8% and 1.6%, respectively, following the news.
Crude Oil Prices Soar once more
Crude oil prices climbed following Bloomberg’s announcement tanker tracking data recording exportation from Iran, fell to a 2.5-year low at 1.72 million barrels in September. This is ere the rising re-imposition of US penalties, which supports the Trump administration’s decision to withdraw from a nuclear demilitarization agreement with Tehran agreed to by former President Barack Obama. Looking forward, a weekly oil inventory flow measure from API is in focus on the economic calendar. The result probably will be decided toward projections asking for a 900k build to be reported in official EIA statistics on Wednesday. Differences on the upside may weigh on prices while a modest inflow or surprise draw will reasonably prove to be supportive.
Dollar slips vs yen
On Tuesday the greenback held its earnings versus a box of currencies falling off almost a year’s top, versus the yen while the momentum for more risky appetites from the U.S.-Canada trade agreement to replace NAFTA deal decreased.
Traders expected the result from the Reserve Bank of Australia monetary policy meeting. The RBA is expected to increase its record spell of rates at 1.5 percent well into next year, according to a Reuters survey.
The dollar index, which gauges the greenback versus a basket of six rivals, edged above to 95.320, trading near a three-week high of 95.370 touched the previous trading session.