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/CANADA/CHINA: Fitch chief econ. Coulton added...>

US
US: /CANADA/CHINA: Fitch chief econ. Coulton added with "Fed having now
announced the start of the process of unwinding quantitative easing and the ECB
likely to phase out asset purchases by" mid-2018, "central bks in other advanced
countries are also now contributing to a shift in the mood music surrounding
global monetary policy."
- Bk of Canada "recently raised interest rates twice in rapid succession despite
inflation remaining quite low" and BOE "signaled that last yr's rate cut could
be reversed in coming months if the economy evolves as expected," he said. Even
"Bk of Japan looks in practice to be scaling down its rate of purchases somewhat
from the official trgt of JPY80Tln of govt bonds"/yr."
- Geopolitics risk reemerged; N.Korea tension implication key to watch, such as
"US-China relations" in context of US admin concern on "US-China bilateral trade
deficit. Eurozone fragmentatn risks have fallen" since early 2017; "forthcoming
Italian electns could see euroskeptic arguments regain prominence and a further
sustained escalation" in tension between "Catalonian and Spanish govt cld imply
some downside risks for Spain's recent impressive growth performance."

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