Futures edge higher as U.S.-Mexico deal eases trade war fears

[August 28, 2018]   By Shreyashi Sanyal

(Reuters) - U.S. stock index futures rose slightly on Tuesday on hopes that a trade agreement between the United States and Mexico will go some way to averting a global trade war.

The benchmark S&P 500 and the Nasdaq indexes hit all-time highs on Monday after the two countries agreed to overhaul the North American Free Trade Agreement, putting pressure on Canada to remain part of the three-nation pact.

Canadian Foreign Minister Chrystia Freeland is expected to travel to Washington for talks on Tuesday. Her spokesman said Canada would sign only a new agreement that is good for the country.

U.S. President Donald Trump and German Chancellor Angela Merkel spoke by telephone and the two leaders "strongly supported ongoing discussions" on trade, according to the White House.

The early gainers in premarket trading included the trade-sensitive heavy machinery maker, Caterpillar <CAT.N>, which was up 0.54 percent. Automakers General Motors <GM.N>, Ford <F.N> and Fiat-Chrysler <FCAU.N> were up between 0.33 percent and 1.08 percent.

At 7:35 a.m. ET, Dow e-minis <1YMc1> were up 34 points, or 0.13 percent. S&P 500 e-minis <ESc1> were up 3.5 points, or 0.12 percent and Nasdaq 100 e-minis <NQc1> were up 15.5 points, or 0.2 percent.

Traders work on the floor at the New York Stock Exchange (NYSE) at the end of the day's trading in Manhattan, New York, U.S., August 27, 2018. REUTERS/Andrew Kelly

Tiffany & Co <TIF.N> rose 3.7 percent after the upscale jeweler topped quarterly same-store estimates and raised its full-year profit forecast after strong sales in the Americas and Asia-Pacific regions.

Best Buy <BBY.N> fell 5.5 percent after the electronics retailer's online sales growth slowed for a second quarter in a row and its current-quarter profit forecast missed estimates.

Xilinx <XLNX.O> climbed 2.6 percent after Baird upgraded the chipmaker's shares, citing an expected ramp-up in 5G-related shipments later this year.

Coty <COTY.N> gained 5.9 percent after Morgan Stanley upgraded the beauty products maker's shares.

The Conference Board is expected to report its consumer confidence index for the month of August at 10 a.m. ET.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)

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