Stocks weakened around the globe and European assets sold off on yesterday as anti-euro comments sent Italy’s bond yields to multi-year highs and optimism over an agreement to revamp a North American trade deal receded.

The MSCI world equity index dipped 0.3 per cent, paring Monday’s gains due to the new US-Mexico-Canada trade deal. The pan-European FTSEurofirst 300 index lost 0.55 per cent.

Wall Street slipped at the open with bank stocks the biggest drag, but soon regained some momentum. The Dow Jones Industrial Average rose 81.53 points, or 0.31 per cent, to 26,732.74, the S&P 500 lost 0.11 points, or -0.00 per cent, to 2,924.48 and the Nasdaq Composite dropped 8.49 points, or 0.11 per cent, to 8,028.82.

The euro fell to its weakest since August 21 at $1.1505, before retracing to $1.1537, down 0.34 per cent on the day.

The single currency has been hurt by concerns that a significant increase in the Italian budget will deepen Italy’s debt and deficit problems, and by extension the European Union’s.

The US and Canada forged a last-minute deal on Sunday to salvage NAFTA as a trilateral pact with Mexico.

The trade pact helped the dollar index rise to its highest since August 21, at 95.744. It was last at 0.17 per cent.

Oil prices steadied near their highest since November 2014 as markets braced for tighter supply once US sanctions against Iran kick in next month.

US crude fell 0.31 per cent to $75.07 per barrel and Brent was last at $84.77, down 0.25 per cent on the day.

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