European stocks to open higher after US-Mexico trade deal

European stocks are set to open higher Tuesday morning, with risk appetite boosted by news of an agreement between the U.S. and Mexico to overhaul the North American Free Trade Agreement (NAFTA).

The FTSE 100 is seen little changed at around 7,621; the CAC is expected to open 12 points higher at 5,492, while the DAX is poised to start up around 36 points at 12,576, according to IG.

Market focus is largely attuned to ongoing trade discussions between the U.S., Mexico and Canada, with Ottawa widely expected to agree to new terms this week. A revised three-nation pact would effectively dispel recent economic uncertainty, which had been prompted by President Donald Trump’s repeated threats to scrap the 1994 NAFTA accord.

The U.S. and Mexico reached common ground on key trade terms on Monday, with Canada scheduled to re-join talks on Tuesday. Disputes between the U.S. and its trading partners have been a drag on market sentiment for much of the year, despite robust economic fundamentals and two sold quarters of corporate earnings.

In Asia, MSCI’s broadest index of Asia-Pacific shares, excluding Japan, rose around 0.6 percent for the second consecutive session.

Back in Europe, France and Italy are both scheduled to publish consumer confidence data for August during mid-morning deals.

Source: CNBC

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