Global Central Banks Turning Hawkish & Markets Holding A.I. CapEx Story

Central Bank Actions - Central banks outside the US are leaning more hawkish, with the Bank of England expected to implement a hawkish cut next week, while the Fed's recent cut was less hawkish than anticipated [3][4] - The Bank of Japan is expected to hike rates next week and potentially one or two times next year, contributing to pressure on the dollar [5] Market Reactions - The dollar index has decreased by about 1% over the past two days, which has positively impacted returns for international stocks [5] - Despite concerns regarding Oracle's AI capital spending, the market is holding up well, with the S&P 500 only down 12 points and the Russell and Dow Jones showing gains [6][8] Economic Indicators - Economic growth in Canada and Mexico has exceeded expectations, with both countries' stock markets up nearly 30% in local currency this year [15] - Job creation in Canada has been strong, with 180,000 new jobs added over the last three months [5] Trade and Tariffs - Mexico's potential implementation of up to 50% tariffs on goods from China and other countries is likely a strategic move related to the upcoming USMCA review [14] - China continues to maintain a trade surplus of over $1 trillion, diversifying its markets despite a slowdown in exports to the US [16]