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Summary – June 04

LATAM
  • Brazil Q1 GDP is expected to rise 0.7% q/q and 2.3% y/y on Tuesday, while Mexico March gross fixed investment and private consumption will cross. Mexico and Brazil will also publish May vehicle sales figures, while Colombia export figures for April are due, alongside the manufacturing PMI for May. In the US, focus turns to JOLTS job openings data, while final April durable goods orders should confirm the steady pace in the prelim update. The central bank speaker slate remains typically quiet given the ECB and Fed remain inside media blackout periods.
  • Global News:
    • ISRAEL - Prime Minister Netanyahu reiterated that there would be no permanent cease-fire in the war against Hamas in Gaza until the country’s conditions are met, which include the destruction of the militant group. Israel is willing to pause hostilities for the purpose of returning hostages but what happens next will be subject to further talks, Netanyahu said in a meeting with parliament’s Foreign Affairs and Defence Committee on Monday.
    • JAPAN - The BoJ is likely to discuss the reduction of bond purchases as early as its policy meeting next week, according to people familiar with the matter. BOJ officials will probably consider if the timing is appropriate to slow the pace of bond buying from the current roughly ¥6 trillion per month and whether they need to provide more details on the outlook to improve predictability. Given that the central bank has no intention to surprise bond market participants, any shift will only be gradual and in stages with round numbers, the people said.
    • INDIA - Partial results from the Indian general election show that PM Narendra Modi and his National Democratic Alliance (NDA) allies are on course to secure a majority in the Lok Sabha that would give the PM a third term in office. However, so far the NDA is falling well short of pre-election expectations.

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