Bovespa hits the brakes, but is still positive.
Central bank coordination is generating more optimism in Europe than in Brazil and the United States.
247 - The announcement of a coordinated action to provide liquidity to the global financial system, involving the central banks of the United States, England, Switzerland, Japan, and also the European Central Bank, boosted the markets, which opened higher. Less than two hours after opening, however, optimism cooled in São Paulo and New York, with their indices marking +0,20% and +0,38%. Stronger confidence continued in Paris and Frankfurt, with +3,03% and +3,86%.
PRE-OPENING - The global market took a turn for the better and gained momentum to recover from the bottom. Asian stock markets closed with widespread gains, with Tokyo rising 1,8%, Seoul advancing 1,4%, and Hong Kong closing 0,7% higher. The exception was Shanghai, which fell modestly, 0,2%, due to specific factors. The positive sentiment triggered a new series of gains in European stock markets.
The reason for the positive sentiment is the unconditional support that Germany and France have given to Greece. In a meeting yesterday, Prime Ministers Angela Merkel and Nicolas Sarkozy told the Greek head of government, Georges Papandreau, that the euro is unbreakable and that Greece is an inherent part of the region.
This means that Greece, which has been struggling to meet its fiscal obligations to the IMF, ECB, and EU in order to earn the right to receive the second tranche of funds to finance its debt, will have no problem receiving the money needed to settle its accounts. The mood has eased.
Today, employment data from the 17 countries in the eurozone also boosted the markets. There was growth in employment. Spain also managed to hold a successful bond auction to roll over its debt. All in all, confidence grew. A short while ago, the London Stock Exchange was trading 1,6% higher, while Paris advanced 2,1% and Frankfurt showed a 2,2% increase.
The positive climate is expected to spread to Brazil and the United States. In Brazil, the key factor is that the domestic market remains strong and guarantees good results for companies focused on the local consumer. In the US, there is growing expectation surrounding the Fed meeting on September 20th and 21st, when it is expected to announce measures to support American economic growth.
Things today give hope for better days.