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Summary – March 27

LATAM
  • Chile’s central bank will publish its latest traders survey on Wednesday. Mexico February trade and Colombia February unemployment data will also cross, followed by Brazil formal job creation and Argentina wages data later. In the US, the Fed's Waller is set to address the economic outlook.
  • Global News:
    • JAPAN – Officials from Japan’s Ministry of Finance, the BoJ and Financial Services Agency are meeting to discuss international financial markets in their first three-way meeting since late May, according to an emailed statement. The unscheduled meeting comes after Japan’s currency slipped earlier Wednesday to the weakest level versus the dollar in about 34 years.
    • ECB – Inflation is on the back foot and June may be a good time for the ECB to begin lowering borrowing costs, as investors expect, according to Governing Council member Martins Kazaks. “Uncertainty is high and here we need to be very cautious — we don’t want inflation to revive — but at the moment it looks like this dragon is pinned to the ground,” Kazaks told LTV Wednesday in Riga, Latvia, where he heads the central bank.
    • CHINA MNI (Beijing) – China will continue to ease homebuying restrictions and increase financing support for developers, but authorities must accelerate and intensify policies and implement unconventional measures to help the market bottom as quickly as possible to hasten the recovery, advisors told MNI. Beijing and Shanghai may lift home-purchase limits from suburbs this year, said Guo Xiangyu, director of research with the Research Center for Real Estate Finance at PBC School of Finance at Tsinghua University, a prominent think tank.
    • COMMODITIES – Brent has the potential to rally to $100/bbl this year if Russia’s recent decision to cut production isn’t balanced out by other counter-measures, according to JPMorgan Chase & Co. While the bank opted to leave price forecasts unchanged for now, Moscow’s “actions could push Brent oil price to $90 already in April, reach mid-$90 by May and close to $100 by September,” analysts said.

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