6-month high in early trading Tuesday
Positive overtones from the NAFTA trade talks have given global stocks a boost Tuesday.
Equities hit a 6-month high in early trading amid optimism that a trade war could be averted due to progress in the talks between the US and Mexico.
Bloomberg reports that investors are expecting that Canada will also agree to some key issues for a new agreement rather than see it fail.
Although this is likely to mean concessions – on both sides – some analysts see a stronger position for Canada following the agreements made by the US and Mexico.
Not that the deal is necessarily going to achieved quickly, especially with President Trump keen to include at least some of Canada’s dairy industry in a new deal.
“There will be elements of this understanding which I think Congress will seriously question, as will the Canadians, so I think we’re still a fair distance away from a new Nafta 2.0,” Gary Hufbauer, senior fellow and trade specialist at the Peterson Institute for International Economics told Bloomberg.
However, despite concerns, one Canadian minister who spoke anonymously said that a deal could be done this week.
