Stock-market bulls face potential caution with upcoming events such as a U.S./Russia summit in Alaska, a central bank gathering in Wyoming, and elections in Bolivia. Investors await Trump’s meeting with Putin to end the war in Ukraine, with Europe wary of potential sideline decisions. Outcome could impact stocks, euro, and bonds.
Jackson Hole central bankers’ conference with Fed Chair Powell could disrupt markets. Any hint of no rate cut in September might lead to a sell-off, while an overly positive tone could fuel euphoria. Global investors foresee U.S. stagflation ahead, with concerns about market regime and Fed rate cuts.
Bank of Japan stands out by aiming to raise borrowing costs while other central banks cut rates. Focus on upcoming inflation data to predict BOJ’s tightening cycle. Inflation remains above target, complicating normalisation. Governor justifies slower rate hikes due to underlying inflation below target.
Latin America gears up for national elections, starting with Bolivia. Investors monitor shift towards market-friendly right-wingers after the “pink tide” of left-leaning governments. Bolivian bonds rally on hopes of economic recovery through political change. Elections in Argentina, Chile, Colombia, Peru, and Brazil to follow in coming months and years.
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