US-Canada trade talks resume Wednesday

The preliminary US-Mexico deal helped ease global trade war concerns last week. Global equities advanced while the dollar weakened.

The SP 500 extended gains 0.9% last week while the ICE dollar index lost 0.05%. The 0.8% advance in the broad US stock market index on Monday was the biggest gain last week as President Trump said the preliminary US-Mexico trade agreement would help to replace the North American Free Trade Agreement.

The dollar weakened every session last week except Thursday and Friday. The ICE dollar index rallied 0.4% Friday as dollar demand was boosted after talks between the US and Canada broke off with no North American Free Trade Agreement deal before an unofficial White House deadline of Friday.

US and Canada trade talks and developments in US-China tariff war will be the global equity market drivers this week. Talks are scheduled to resume on Wednesday. Interest rate decisions by central banks of Australia and Canada on Tuesday and Wednesday respectively, and US nonfarm payrolls report on Friday are the other most significant events this week.