Equities mixed following greenback slip... Trump can’t just cancel NAFTA...
Equities mixed following greenback slip
The US dollar declined Tuesday following comments made by president-elect Donald Trump regarding the currency’s strength. In an interview with the Wall Street Journal he said that the greenback was too strong and made it harder for US firms to compete.
The comments triggered an easing of the US dollar and equity markets are mixed Wednesday, especially as oil prices have tumbled overnight.
Asian markets closed mostly higher with Tokyo boosted by the weaker yen until the greenback reversed. Shanghai and Hong Kong were also higher while Sydney’s ASX lost ground as financials slipped.
The ongoing influence scandal surrounding South Korea’s president saw the Seoul index decline as Samsung’s chief was questioned by prosecutors over alleged links to the scandal.
European indexes are generally higher as investors digest corporate earnings and the Brexit speech made by UK prime minister Theresa may during the previous session.
Wall Street and Toronto are expected to open higher. US inflation data and the Bank of Canada’s Monetary Report are due.
Trump can’t just cancel NAFTA
Concern over the future of the North American Free Trade Agreement continues to weigh on Canadian businesses and investors but a new analysis says that the new president will not be able to go it alone.
The CD Howe Institute report says that the president will need Congress to support any attempt to cancel or change NAFTA but that he could frustrate US-Canada trade in other ways.
Trump’s executive power will allow the introduction of border taxes without Congress’ agreement, but even that could be “very costly to the US economy and would doubtless provoke retaliation from US trading partners and litigation both in the US court system and before international bodies such as the WTO” the report says.
Report author Jon Johnson says that Ottawa must work with the US Congress to ensure the trade deal remains, preferably including Mexico, noting that “Canada is at risk of being sideswiped by aggressive anti-trade and anti-NAFTA measures that the president may adopt.”
The US dollar declined Tuesday following comments made by president-elect Donald Trump regarding the currency’s strength. In an interview with the Wall Street Journal he said that the greenback was too strong and made it harder for US firms to compete.
The comments triggered an easing of the US dollar and equity markets are mixed Wednesday, especially as oil prices have tumbled overnight.
Asian markets closed mostly higher with Tokyo boosted by the weaker yen until the greenback reversed. Shanghai and Hong Kong were also higher while Sydney’s ASX lost ground as financials slipped.
The ongoing influence scandal surrounding South Korea’s president saw the Seoul index decline as Samsung’s chief was questioned by prosecutors over alleged links to the scandal.
European indexes are generally higher as investors digest corporate earnings and the Brexit speech made by UK prime minister Theresa may during the previous session.
Wall Street and Toronto are expected to open higher. US inflation data and the Bank of Canada’s Monetary Report are due.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 19,826.77 (-0.30 per cent) | -0.08 per cent | +24.01 per cent |
| TSX Composite | 15,441.36 (-0.25 per cent) | +1.24 per cent | +29.30 per cent |
| Europe (at 5.00am ET) |
|||
| UK FTSE | 7,221.68 (+0.02 per cent) | +3.00 per cent | +24.94 per cent |
| German DAX | 11,548.12 (+0.07 per cent) | +1.26 per cent | +21.28 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,339.37 (+0.39 per cent) | -0.20 per cent | +6.66 per cent |
| Japan Nikkei | 18,894.37 (-0.43 per cent) | -2.61 per cent | +11.43 per cent |
| Other Data (at 5.00am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 54.60 (-1.57 per cent) |
51.66 (-1.56 per cent) |
1213.90 (+0.08 per cent) |
U$0.7643 |
| Aus. Dollar |
|||
| U$0.7551 | |||
Trump can’t just cancel NAFTA
Concern over the future of the North American Free Trade Agreement continues to weigh on Canadian businesses and investors but a new analysis says that the new president will not be able to go it alone.
The CD Howe Institute report says that the president will need Congress to support any attempt to cancel or change NAFTA but that he could frustrate US-Canada trade in other ways.
Trump’s executive power will allow the introduction of border taxes without Congress’ agreement, but even that could be “very costly to the US economy and would doubtless provoke retaliation from US trading partners and litigation both in the US court system and before international bodies such as the WTO” the report says.
Report author Jon Johnson says that Ottawa must work with the US Congress to ensure the trade deal remains, preferably including Mexico, noting that “Canada is at risk of being sideswiped by aggressive anti-trade and anti-NAFTA measures that the president may adopt.”
