Solid employment, tax reform, and new trade deals dominate the global agenda. 

Week of June 30 – July 3 

A short week marked by new trade agreements and mixed economic data across major markets. 

Robust employment, tax reform, and mixed global signals 
Here are the most relevant developments from the international scene this week: 

• United States 

• Nonfarm payrolls surprised to the upside, with 147,000 new jobs added in June, beating expectations of 110,000. The unemployment rate dropped to 4.1%.
• The Senate approved President Trump’s fiscal plan, which includes new deductions and extends the 2017 tax cuts.  
• A new trade agreement was announced with Vietnam. 

• Europe 

• Eurozone inflation rose slightly to 2% year-over-year, in line with expectations. 
• The European Union signaled willingness to accept a general 10% tariff if the U.S. reduces duties in key sectors such as alcohol, semiconductors, and pharmaceuticals. 

• China 

• Manufacturing activity contracted for a third consecutive month, though at a slower pace. 
• The services sector grew at its slowest rate in nine months, amid weakening demand and fewer new orders. 

• Brazil 

• The Central Bank indicated that recent easing in inflation may allow for a reassessment of its monetary stance. The Selic rate remains at 15%, its highest level since 2006. 

• Mexico 

• Banxico highlighted the strength of the financial system following the intervention of three institutions under investigation for alleged money laundering. 
• Remittances totaled US$5.36 billion in May, a 4.6% year-over-year decline. 

“An investment in knowledge pays the best interest.” — Benjamin Franklin 

KEY UPCOMING EVENTS 

• United States: FOMC minutes release – 07/12 
• China: June inflation report – 07/09 

Monitor