Political uncertainty stokes volatility, but markets continue to rally
Bank of Canada kicked off the monetary easing cycle
The Bank of Canada (BoC) became the first G7 central bank to initiate the monetary easing cycle by cutting its benchmark interest rate by 25 bps to 4.75% in June.
Political regime changes caused volatility
June was a busy month on the political front as elections in Mexico, India, France, the U.S., and the UK have had some surprising outcomes and varying market reactions.
Economy – goldilocks for now but some signs of slowing in the U.S.
The U.S. economy has been delivering one upside surprise after another since the pandemic but that has started to show signs of slowdown recently as retail sales and consumer confidence are starting to miss expectations.
