European stock markets mostly rose on Monday, after Asia closed lower, amid worries about trade friction between the U.S. and Canada and subdued investor activity due to a U.S. holiday.
France’s CAC 40 was up 0.1 per cent to 5,410, while Germany’s DAX lost 0.2 per cent to 12,338. Britain’s FTSE 100 gained 0.9 per cent to 7,498. Wall Street was scheduled to remain closed for Labor Day.
Earlier, Japan’s benchmark Nikkei 225 lost 0.7 per cent to finish at 22,707.38. Australia’s S&P/ASX 200 slipped 0.1 per cent to 6,310.90. South Korea’s Kospi shed 0.7 per cent to 2,307.03. Hong Kong’s Hang Seng fell 0.6 per cent to 27,712.54, while the Shanghai Composite index was down 0.2 per cent at 2,720.73.
Investors had hoped the U.S. and Canada would finish the outlines of a revamped NAFTA pact after the U.S. and Mexico announced a preliminary agreement. U.S. Trade Representative Robert Lighthizer said last week that talks will resume on Wednesday. President Donald Trump said he is willing to make a deal with just Mexico, excluding Canada, but Wall Street is confident the final deal will include all three.
“With Canada not reaching an agreement with the U.S. on the NAFTA talks that were rushed on Friday last week, focus has now shifted to the mid-week deadline for Canada to sign up for the revamped NAFTA structure,” said Vishnu Varathan at Mizuho Bank in Singapore.
Benchmark U.S. crude rose 24 cents to $70.04 a barrel. It fell 0.6 per cent to $69.80 a barrel in New York late Friday. Brent crude, used to price international oils, rose 57 cents to $78.21 a barrel.
The dollar rose to 111.12 yen from 110.75. The euro fell to $1.1618 from $1.1685.