Weekly Economic Perspectives

Weekly Highlights

Economies: Service activity picks up in the US. Canadian manufacturing employment declines. The BoE keeps the Bank Rate unchanged but there are two votes for an immediate cut. Eurozone manufacturing continues to contract but service activity continues to expand. Japan’s wages remain resilient. The RBA leaves the cash rate unchanged, signals pause. (pages 2 – 6)

Markets:  A clear risk-on week driven by good earnings and better news on trade talks. Bond yields move sharply higher as the curve steepens. The dollar recoups some recent losses, dovish BoE drives pound lower. Oil moves higher but goldgets hammered amid improved risk appetite. (page 7)