October 17, 2020
Financial market latest publications
The Uruguayan Financial System is healthy despite having gone through the worst months in recent history in terms of activity and employment. The quick reaction of the CB with timely measures to avoid the rupture of the payment chain allowed it to overcome these difficulties and to maintain a comfortable capital surplus.
The risk-off mood intensified, as fears about the impact of the virus on growth increased. Meanwhile, the U.S. economy showed signs of a slowdown in consumption.
Investors await the Fed’s response as funds rate breaches the target range.
During the week, government bonds rose strongly as weak economic data from Germany and China renewed investor concerns about global economic growth. Market expectations that the ECB will aggressively relax its monetary policy at the September meeting have increased.
This presentation touches various issues: evolution of bilateral trade and investment, LatAm’s export dependency on China, China’s OFDI and financial influence in LatAm and existing critiques on China’s role in LatAms and new opportunities.