London — World stocks rose to a six-month high on Tuesday, lifted by investor optimism that a US-Mexico deal to overhaul the North American Free Trade Agreement (Nafta) will go some way to averting a global trade war. Investors expect Canada to also agree to the new terms to preserve a three-nation pact, while US President Donald Trump and German Chancellor Angela Merkel spoke by telephone and the two leaders "strongly supported ongoing discussions" on trade, according to the White House. European and Asian shares followed Wall Street’s lead, inching to multi-month highs after the S&P 500 and Nasdaq indices surged to fresh records on Monday led by gains in technology stocks. The dollar slipped to a four-week low and implied volatility across currencies and equity markets also eased, as investors took on greater risk appetite. Emerging-market stocks hit their highest since August 9. "Global trade tensions have undoubtedly been the most significant source of risk in 2018," said Hussei...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.