1. Moody’s downgrades US credit rating: Questions over the safe-haven status of the United States as an investment market, a weakening US dollar and unpredictable policies have investors increasingly diversifying away from the United States. This may act as a catalyst for other asset classes, for example, emerging market (EM) equities. With this decision, Moody’s is the last of the three major agencies to downgrade the United States from the highest credit rating.

2. Tariff deadline looms: At the time of writing, few countries have brokered deals with the United States on reciprocal tariffs. A pleasant surprise, however, was that China and the United States have reached a mutual agreement; this was once expected to be the toughest negotiation. The final days of June have seen an increase in diplomatic activity, but the pace of negotiations still remains drawn-out.

3. Latin America: Strong earnings results from several Brazilian heavyweight companies, despite high interest rates, peppered headlines. Brazil’s central bank continued to increase interest rates during the quarter, but this did not dampen investor sentiment for Brazilian equities. This positivity was also evident in Mexico, where the central bank lowered benchmark interest rates. Its benchmark rate now hovers at its lowest level in nearly three years. The region is also seen as relatively insulated from tariffs and major geopolitical conflicts.

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