And the Canadian central bank came through with its expected rate cut, a -25 bps reduction to 4.75%. Markets expect the ECB will make similar signals, and also a -25 bps rate cut to 4.25%. If so, these signal a new trend of major central bank rate cuts, led by this Canadian one. Interestingly, the Canadian rate cut has not brought expectations it will revive their housing markets. The private Caixin services PMI for China came in better than expected for May and a bit better than the official services PMI.
