US Stock futures point to a mixed opening with global trade tensions

US Stock futures point to a mixed opening with global trade tensions

US stock index futures were mixed ahead of Tuesday’s opening as trade tensions between the United States and major economies continued.

At about 7 am, Dow Jones futures are trading at around 60 pips, while the Nasdaq and S&P 500 are showing a steady start to a positive day for their respective sessions. Markets in Asia and Europe were pointing in different directions during their trading sessions.

Last week, the United States and Canada failed to reach an agreement to replace the current NAFTA agreement by Friday’s deadline. While a deal was arranged with Mexico, President Donald Trump said at the end of last week that “there is no political need to keep Canada in the new NAFTA agreement.”

The White House issued a 90-day notice to Congress on Friday that there was no agreement with Canada and the revised North American Free Trade Agreement agreement with Mexico will continue. Trade negotiations with Canada are expected to continue on Wednesday.

Other world leaders are closely watching how US President Donald Trump will negotiate with disputed trade tariffs with Europe.

Also last week, the Bloomberg report indicated that the United States administration was ready to charge more than $ 200 billion worth of Chinese goods this week. In an interview with the same media, Trump warned that he would consider removing the United States from the World Trade Organization (WTO) if it was not “formed.”
Investors are also focusing on emerging markets. In Turkey, the lira lost at least 40 per cent of its value in 2018 due to concerns surrounding President Erdogan’s policies and the economy.

The Argentine government asked the International Monetary Fund (IMF) to release early funds from the $ 50 billion reserve package in the country last week – a move that surprised the markets and put the peso under pressure.