European stocks open lower as new NAFTA deal lift fades

Big 5

European stocks opened lower Tuesday morning, after a market rally following a new North American Free Trade Agreement (NAFTA) faded.

The pan-European Stoxx 600 was down around 0.4 percent shortly after the opening bell, with all sectors and major bourses in negative territory.

Market focus is largely attuned to global trade developments, after the U.S. and Canada forged a last-gasp deal on Sunday to revamp NAFTA as a trilateral pact with Mexico. The accord rescued a $1.2 trillion open-trade zone that had been about to collapse after almost quarter of a century.

In Asia, cautious views on the global economy appeared to hamper risk appetite. MSCI’s broadest index of Asia-Pacific shares, excluding Japan, fell 1 percent after a steady start to the session.

China’s financial markets are closed this trading week, as the country observes a national holiday.

Back in Europe, investors continued to monitor corporate earnings, with Britain’s Ferguson scheduled to release full-year results on Tuesday.

Source: CNBC