Research and Market Commentary
Latam Weekly: More Fiscal, Wider Asset Purchases
June 20, 2020Latam Weekly: More Fiscal, Wider Asset Purchases
A holiday-interrupted trading week will face a handful of main global risk factors and a sprinkling of regional market considerations. US markets will shut on Friday July 3rd ahead of Independence Day and there will be an early 2pmET bond market close on the Thursday. Canadian markets will shut early at 1pmET on Tuesday and all day on Wednesday for Canada Day. Canadian markets are therefore likely to be relatively quiet for much of the week.
The main risks over the coming week will be:
• evidence on how quickly US jobs and manufacturing are coming back;
• further important colour derived from the FOMC’s recent meeting that contributed to market uncertainty;
• evidence on the durability of China’s rebound; • potential flaring of US trade aggression against Canada; and
• regional considerations will include a pair of central bank decisions, a stale Canadian GDP reading and Eurozone CPI.