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01 October 2018
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Japan financial markets (The Total Investment & Insurance Solutions)
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.The Total Investment
& Insurance Solutions
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