Stocks up on trade deal

World stock markets pushed higher yesterday on news of a historic trade deal between Canada and the United States. The United States-Mexico-Canada Agreement (USMCA), agreed Sunday, replaces the North American Free Trade Agreement (NAFTA) -- which US President Donald Trump had threatened to cancel.

Wall Street’s main indices jumped higher at the opening of trading, following European and Asian markets higher. In late morning trading the Dow was 1.0 per cent higher, just shy of an all-time high. In Europe, both Frankfurt and Paris advanced, while London’s blue-chip FTSE-100 retreated slightly, due to a stronger pound and weakness in construction and airline shares.

Meanwhile, the Canadian dollar leapt to a more than fourmonth pinnacle against the greenback , with the loonie at 1.2887 to one US dollar -- a level last seen in May. The Mexican peso also rose against the dollar. Tokyo scales 27-year peak The news also helped send Tokyo stocks to a 27-year peak, but shares struggled elsewhere in Asian holiday trade.

Tokyo’s leading Nikkei index closed at 24,245.76 -- the highest since November 1991 -- as traders shrugged off disappointing business confidence data and a weekend typhoon that hit the country. Japanese equities also won support from the weaker yen against the dollar. Analysts warned, however, that traders could be looking to take some cash off the table following recent healthy gains. Markets in Hong Kong and China were shut for holidays.

Separately, the pound rose versus the dollar as British Prime Minister Theresa May gathered her ruling Conservative Party in the central city of Birmingham, facing an open revolt by former colleague Boris Johnson over her plans for Brexit. Bloomberg reported that May is preparing to make a significant new Brexit offer to the EU in an attempt to open the door to a deal. Meanwhile, oil prices hit a four-year high on concerns about sufficient supply when US sanctions hit Iranian exports next month.