Markets improved slightly their bullish trend, always with very low ratios, as there are still doubts amongst the investors about the strength of the economic recovery, mainly in US. There is also another ingredient in this financial mixture: US markets are touching their highest levels and many analysts are wondering when the correction will come.
But the eyes are on Europe. ECB meets tomorrow to take possibly historical decisions in its monetary policy. Low inflation figures are warning European authorities about the risk of deflation. One of the main points is the exchange rate with other currencies. Europe is importing deflation with the high rate against dollar and others and exporters are suffering to sell abroad, apart from the deeper trouble: the credit restrictions. These problems have effects in the economic development and employment perspectives. The fear is that the ECB will not be tomorrow brave enough and disappoints the markets, which are really expecting many measures, not only a rate cut.
The bullish trend improved also slightly in Asia. The main news was the election of the conservative Narendra Modi in India as prime minister. Markets have high expectations about him and Indian market experienced a strong bullish trend this month, so T-Advisor figures. The results of the election in Indonesia were also positively welcomed by the investors. However, Japan and China carried on their weak market trend.
Finally, LatAm showed the best trend in world markets pushing by Argentina. Its government announced an agreement with its lenders to pay the debt. Argentina was the instability focus in the lasts years in the continent and the deal about the debt opens new expectations for investors. On the other side, Brazil remains quite weak.