Global stocks soared to half-year highs on Tuesday as the US and Mexico closed a new trade agreement to overhaul the North American Free Trade Agreement (NAFTA).
The investment appetite has lifted amid a deal that is ‘incredible for both parties’ (according to President Trump), and expectations that Canada will also agree to the new terms.
On Monday, the MSCI's world index followed, by showing its best results for more than four months, increasing by about 0.15%, while the pan-European MSCI index jumped up 0.3%.
USD has frozen near one-month lows against a basket of currencies and has also been extremely volatility across many currencies.
However, some analysts hold doubts about the rally, reasoning that markets are acting as if Canada has already agreed to join the deal, which is yet to be decided.