Asian shares advanced on Tuesday and the U.S. dollar hovered near one-month lows as a U.S.-Mexico deal to overhaul the North American Free Trade Agreement boosted risk appetite. The dollar remained near one-month lows against the euro on but gained against the yen after a U.S.-Mexico deal aimed at overhauling the North American Free Trade Agreement boosted appetite for riskier assets.
The agreement put pressure on Canada to consent to new terms in order to preserve a three-nation pact, which could revive economic uncertainty caused by U.S. President Donald Trump’s repeated threats to ditch the 1994 accord.
The United States and China held two days of talks last week without a breakthrough as their trade war escalated with the activation of another round of duelling tariffs on $16 billion of each country’s goods.
The monitoring committee of the Organization of the Petroleum Exporting Countries (OPEC) found that oil producers participating in a supply-reduction agreement, which includes non-OPEC member Russia, cut output in July by 9 percent more than called for.
Oil prices were steady, capped by gradually rising output from producer club OPEC and supported by perceived supply risks from places such as Venezuela, Africa and Iran. International Brent crude oil futures were at $76.21 per barrel, unchanged from their last close. U.S. (WTI) crude futures were down 4 cents at $68.83 per barrel.
Gold prices slipped at 1202 as the dollar pared losses after reaching its lowest level since Aug. 2 in early trade after the U.S. and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA).