Markets in the US marked a remarkable session after the US and Mexico reached a new trade agreement, potentially removing one of the sources of uncertainty that has been bothering investors for months, reports CNBC.
The technological benchmark Nasdaq Composite an increase of 0.9%, reaching a new peak and moving 8000 points for the first time in history after the shares of Facebook, Amazon, Netflix and Alphabet have increased.
The main indicator S & P 500 ended with 0.8% to a new record level of closure and the raw materials and the financial sector performed the best.
The blue chip index Dow Jones industrial average rose by 258 points caterpillar perform best.
"The market has recently been hit by a number of unfavorable winds and the largest is trade," says Art Hoogan, market leader of the market at B. Riley FBR. "If you exchange the photo, there will be a smoother transition to this market. "
US President Donald Trump said that the transaction is called US-Mexican trade agreement, with which the 24-year-old name NAFTA stays in the past. "The name NAFTA has a bad connotation because the United States was hit hard by NAFTA ", he said. Trump added that the deal with Mexico is very important for farmers and producers.
Shares of caterpillar and Boeing grew by 2.8% and 1.3% respectively. The book of ford, General Motors and Fiat Chrysler also increased their prices. All companies are strongly influenced by the new deal.
The price of the Tesla decreased by 2% after the Chief Executive Officer Ilon Musk did his best to remove the company from the stock exchange.
On the bond market, yields rose thanks to the deal between the US and Mexico. Profitability 10-year government paper reached 2,844 percent and more two-year government bonds – 2.645%.
In the currency markets, the dollar fell for a second consecutive session, still feeling the pressure from the statement of the Federal Reserve Governor Jerome Powell, which indicates a sustained, albeit perhaps slower, tightening of monetary policy. Because it reached a peak of one year in mid-August, the dollar fell by more than 2%.
index dollars, which measures the value against a basket of currencies, decreased by 0.38% to 94.79 points after a decrease of more than 0.5% in the previous session.
The euro rose 0.47% to $ 1.1676, although it even reached $ 1.1654 – the highest level since August 2. The currency increased by more than 0.7% on Friday.
The Mexican peso also increased its value by 1.2% against the dollar after the news of the deal.
Crude oil prices rose slightly on oil products after the OPEC / Non-Cartel committee announced that production is growing explosively.
Futures on oil variety Brent rose 37 cents to $ 76.19 a barrel, and to US crude oil WTI – 15 cents to $ 68.87 per barrel.
gold managed to stay above $ 1,200 for a trombone after weakening the dollar. Futures on precious metals for supplies rose $ 2.70 or 0.2% in December to $ 1216 per troy ounce.