Political perturbation amid widespread US unrest and Hong Kong protests, central bank meetings (RBA, BoC, ECB), PMIs, an OPEC+ meeting, and the US employment report for May are potential flashpoints for investors this week. And if nothing else, the magnitude of recent moves could force investors’ hands ahead of these potential market landmines.
But does any of this matter with the Federal Reserve – supported implicitly by the US Treasury – committed to backstop virtually every single bit of credit in the economy.
In Asia, stock market risk is trading most favorably this morning, re-opening optimism reigns supreme as the markets have temporarily shelved the trade war escalation playbooks in favor of the bullish for market re-opening scripts. And as economic data throughout the region is holding up well.
US President Trump’s press conference last Friday was long on criticism of China but short on action. While the White House is…