BEFORE THE BELL: New US-China trade war worries come from USMCA deal; US crude rally halted by inventory update
Global markets are growing this morning, but investors are nervous about the US China trade war. Analysts say markets are responding positively after the Italian government indicated it would work to cut its deficit by two percent over the next few years. This comes after an Italian official claimed the country would be better off with its own currency, sparking concerns about a head on battle with the EU.
But, Donald Trump’s war on Beijing may be in the spotlight when China comes off a week-long holiday. The concerns come from a clause in the USMCA deal, blocking Canada or Mexico from freely making trade deals with non-market countries. Experts suggest Trump is taking aim at China with the power to veto any future deals between Ottawa and Beijing.
The price of US crude is starting to pull back from its rally, down to 75.17 a barrel after a new report showed a gain in oil inventory.
The Loonie is falling to 77.88 cents US.
Facebook shares are seeing some volatility this morning after Instagram-outages were reported across the globe. The social media giant has faced more controversy after 50 million Facebook accounts were hacked. Facebook stock is growing slightly in pre-market trading.