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Summary – June 25

LATAM
  • Focus on Tuesday turns to the Copom minutes, where attention will be on any discussions around the balance of risks to inflation or the potential for hikes, following the unanimous decision to hold rates. Brazil will also publish construction costs figures for June, followed by May tax collections data.
  • Elsewhere, focus rests on the Canadian CPI release, while in the US, the Chicago Fed activity index is due, followed by June Conference Board consumer confidence and the Richmond Fed manufacturing index.
  • Global news:
    • US / ISRAEL - Israeli Defence Minister Yoav Gallant urged US Secretary of State Antony Blinken to support the country in its conflict with Hezbollah in neighbouring Lebanon, saying the world is watching for signs of strain in the relationship between the two allies. Israel’s military said last week that operational planning for an offensive in Lebanon has been approved, after months of cross-border fire between the two sides started to escalate.
    • FRANCE - French political circles are already discussing the possibility of appointing technocrats to lead the country. The polls suggest that no single political group will secure a majority in the two-round election, and fears are growing that the French economy will nosedive. “One of the solutions could be to appoint a government of experts that would be able to hold for a year or so,” said public law specialist Eric Landot.
    • JAPAN / S.KOREA - Japan and South Korea agreed to seek ways to bolster their currency swap deal in an effort to address persistent weakness in both the yen and won that has exacerbated inflationary pressure via import costs. The $10bn swap agreement that was put in place last year strengthens financial stability in both countries, South Korea said in a statement on Tuesday after Finance Minister Choi Sang-mok and his Japanese counterpart, Shunichi Suzuki, met in Seoul.

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