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USA Canada trade agreement boosts Wall Street

New York, Oct 1 (EFE).- The trade agreement reached between the United States and Canada revived investors sentiment on Wall Street, where its main indicator rose more than 190 points in a day of solid growth in the energy, as well as industrial and raw materials sectors.

On the first day of the last quarter of 2018, the Dow Jones advanced a solid 0.73 percent after it was announced on Sunday night that the two North American Allies had managed to seal a new trade deal to substitute the North American Free Trade Agreement (NAFTA).

The news lifted the market’s mood since both countries had engaged in tense negotiations for weeks, during which even the experts did not dare to predict whether Canada would join the pact that the US had already reached with Mexico in August.

The new US-Mexico-Canada Agreement (USMCA), which is expected to be signed in November, left a special impact on the automotive sector on Monday, given the high number of vehicle imports from Canada to the US.

Some of the major manufacturers, such as Ford and General Motors, rose 1.31 percent and 1.57 percent respectively, while Boeing, a company which depends greatly on international trade trends, also posted a notable increase of 2.79 percent.

The agreement reached on Sunday was a major reassurance for investors after months of trade tensions triggered by the administration of Donald Trump, which has raised taxes on various Chinese imports and consequently eroded its relations with Beijing.

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