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29th-Aug-2018

Stock markets rise after US-Mexico deal

By AFP, London

Stock markets climbed on Tuesday, tracking another Wall Street record following a trade deal struck between the United States and Mexico.
Equities had already been enjoying a run higher after Federal Reserve boss Jerome Powell last week indicated that the US central bank would not aggressively raise interest rates.
"The positive sentiment in the US on the back of the trade deal with Mexico has boosted sentiment," said David Madden, analyst at CMC Markets UK.
"Trade concerns have been hanging over global markets for months, and the US-Mexico deal proves that there is light at the end of the tunnel."
About 1030 GMT, London's benchmark FTSE 100 index was up 0.4 percent. In the eurozone, Frankfurt's DAX 30 won 0.1 percent and the Paris CAC 40 gained 0.2 percent.
"The FTSE 100 is playing catch-up with the rest of Europe following the UK bank holiday yesterday," Madden explained for the London's market's stronger gains.
The US-Mexico agreement meanwhile raises hopes that the North American Free Trade Agreement, rejected by the White House soon after US President Donald Trump's election, can be salvaged after Canada rejoins talks on Tuesday.