FROM THE GLOBAL CIO OFFICE - By Candice Bangsund, Vice President and Portfolio Manager, Global Asset Allocation
While investors digested generally upbeat corporate earnings results, mixed signals on the health of the global economy, and the resumption of US-China trade talks, central banks were front and centre in July. As widely expected, the Federal Reserve took out some “insurance” in order to sustain the expansion and cut interest rates at month-end, while the European Central Bank laid the groundwork for further stimulative measures in the fall. Meanwhile, the Bank of England stepped-back from its hiking bias as newly-minted PM Boris Johnson began preparations for a no-deal Brexit. And on the trade front, tensions receded somewhat as US and Chinese policymakers headed back to the negotiating tables after a two-month hiatus.