Monday saw a rise in equities throughout the world. However the treasury prices of the US dropped after their plans to suspend the tariffs to be imposed on Mexican goods and have come as soothing news for the global economy.
US Dollar had gained against some of the major currencies and Mexican peso had their largest one-day gain since July of 2018. The migration deal and the trade between US and Mexico also helped the market stocks. The agreement between United Technologies Corp to combine their aerospace business with Raytheon Co, defense contractor to create $121 billion worth new firm, has also boosted the US stocks. There was a 0.56% rise by the Dow Jones Industrial Average with 145.54 points to become 26,129.48. There was a 0.71% gain in S&P 500 with 20.54 points and becoming 2,893.88. Finally the Nasdaq Composite rose by 1.36% with 105.65 points thus becoming 7,846.75. There was 0.21% rise in Pan-European STOXX 600 and 0.67% rise in the MSCI’s stocks.
After the trade disputes with Mexico have been resolved to an extent, the focus of the investors is now on if the US President is able to reach an agreement with China. Donald Trump said that if a fair trade deal with China could not be achieved in the Group 20 summit to be held this month, then another set of tariffs will be imposed on the Chinese goods. The existing US- China trade disputes and also since Saudi Arabia and Russia had not yet agreed upon the extension of the deal on output- cutting, the oil prices were lowered this Monday.
There was a 0.23 % rise in dollar index while there was a 0.15% drop in Euro at $1.1314. The euro dropped after the European Central Bank thought of cutting down the interest rates in case of a weakening in economic growth. US dollar was 2.3 % down the Mexican peso and was at the highest level ever since the 31 May. China’s Yuan dropped to its weakest value as China’s imports fell badly.