𝑻𝒉𝒆 𝑾𝒆𝒆𝒌𝒍𝒚 𝑴𝒂𝒓𝒌𝒆𝒕 𝑰𝒏𝒔𝒊𝒈𝒉𝒕𝒔 - June 2 to June 9, 2024

Everything that moved the markets this week.

The Highlight of the Week: Canada and ECB Cut Rates In An Unprecedented Lead in Monetary Policy Easing!

In a move that surprised many, both the Bank of Canada and the European Central Bank (ECB) have cut interest rates. These cuts are aimed at stimulating economic growth amid concerns about slowing global demand and persistent inflationary pressures.

The rate cuts have had immediate effects on bond yields and currency values, with investors adjusting their strategies accordingly. The decisions by Canada and the ECB are being closely monitored as potential indicators of broader monetary policy trends that could influence markets worldwide.

It is rumored that the ECB was essentially “forced” to cut rates: not because inflation was under control, but because the economy is struggling and the national debt interest payments became too heavy in the current rate environment for the Eurozone Member States.

Christine Lagarde (President of the ECB) with Tiff Macklem (Governing of the Bank of Canada)