STOCK MARKET DATA 08/05

STOCK MARKET DATA 08/05

Yesterday the European Stock Market closed downward after the elections in France, although, at the end of the day there was a slow recovery pushed by the financial companies after the speech of Warren Bufftet who said that the financial market is strong in Europe.

In the local market, the shares and bonds didn’t have volatility after the recovery of the oil companies, despite the fall in the crude oil price.

In the United States the data was high above the expected by the analysts. The consumption credit in March went up until the  21.400 million dollars, this is 11.600 million dollars above the forecast.

In the interest rate matter managed by the FED, the projections are stable, at least until the end of the first semester. The analysts are saying that the FED could raise the interest rates as long as the economy shows a strong recovery and presents a moderate inflation rates.

The VIX index is up slightly and that’s why the market became a little more unstable, but while the index does not exceed the 21 points barrier, volatility will be moderated.

The Asian Market presented mixed behavior after trying to recovery some of the Monday losses. Today the market was no fundamentals, waiting for some clearer picture.

In Europe the markets opened with new downwards after political fears because of the situation in Greece that could be in default last month. France is on bank holiday so it is not affecting the results of the day. The industrial production in Germany was 2,8% in March, 2 points higher than expected.

The reality is that economic data are good and mark and increase in global economic activity, but the high level of indebtedness of the countries and the financial market are the ones that are pulling down the stock markets and generating volatility and uncertainty.

In the local market the sale of new vehicles went up 2,4% annually which continues to move the credit market, generating concern in the Bank of the Republic for a potential heating of the economy that could lead to an inflationary process.

For tomorrow we have to take into account the USA Oil Inventory and the publication of the earning report of Pacific Rubiales.