Equities hit record highs on new USMexico trade deal

Equity markets closed at new highs as the US and Mexico announced a new bilateral trade deal on Monday. However, the rally faded somewhat towards the back end of the week as uncertainty surrounding Canada’s participation in the agreement weighed on investor sentiment. A positive revision lifted the figure for US Q2 GDP growth to 4.2%, and Chinese PMIs also saw positive numbers whilst inflation data in the eurozone softened a touch. US Treasuries lost some value, as risk aversion waned on the back of positive trade sentiment. The US dollar also had a mixed week against its peers, whilst commodities saw broadly positive moves.