U.S. Stock Futures, Loonie, Peso Advance on Trade: Markets Wrap

Bloomberg.com — U.S. equity futures, Canada’s dollar and Mexico’s peso all climbed as American and Canadian negotiators reached a deal to preserve a three-way trade bloc with Mexico. There was little follow-through to other markets, with Asian trading thinned by holidays.

Japanese shares were mixed, though the Nikkei 225 Stock Average managed to close at its highest level since 1991. FTSE 100 futures tipped a modest drop in U.K. stocks. Contracts on the S&P 500 Index indicated it will extend its advance after the best quarter since 2013. Oil gained on concern of an impending supply crunch. U.S. 10-year Treasury yields ticked higher, to 3.07 percent.

The loonie climbed to its strongest since May against the greenback after American and Canadian representatives announced a trade deal to be known as the U.S. Mexico Canada Agreement, or USMCA, revamping the old Nafta framework. The move is the latest feather in the cap for U.S. trade negotiator Robert Lighthizer, who has advocated a tough line towards China, compared with Treasury Secretary Steven Mnuchin.

In Asia, volumes were below normal in a number of markets Monday, with Labor Day in Australia, Hong Kong shut and China out through Oct. 7.

Elsewhere, Tesla shares will be in focus after Elon Musk reached an agreement with the SEC. The billionaire gets to keep his job as CEO but must resign as chairman for three years.