Joint
In the US, the stock market consolidated a bearish trend, snapping its six-day rally amid a debate among investors about whether commitments by the Federal Reserve and the Joe Biden administration to allow the economy to recover would trigger destabilizing inflation. Additionally, investors shifted their trading from large-cap technology companies to other sectors that were considered beneficiaries of the president's proposed $6 trillion stimulus bill. Overall, what we've been seeing is that money isn't leaving the market and turning into cash, but rather money is leaving one sector and rotating into another to maintain an overall long bias. Meanwhile, JOLT job postings increased to 1.9 million in December versus the 6.6 million forecast.
Fixed rent
The debt market in emerging market economies also turned negative, thanks to economic data on inflation. In Brazil, the 10-year bond yield rose 9.5 bps to 7.595% due to concerns about lower-than-expected inflation due to a sharp drop in electricity prices, which led to a reduction in short-term interest rate expectations, in addition to stretched fiscal spending. In Mexico, the 10-year bond yield rose 11,9 bps to 5.449% due to faster-than-expected annual inflation in January. The country's central bank is expected to hold rates at its meeting this week. In Colombia, Bonds had a positive day, where the TESTF24 decreased 4.7 bps with a nominal value of COP$393.000 million, as did the 10-year yields, which also decreased 5.00 bps with a nominal value traded in the spot market of COP$11.000 million in the SEN market, after the country auctioned mining areas with potential copper and gold wealth, interested mining companies must register starting February 11 for multiple rounds, on the other hand, the national government announced that it will expand the purchase of vaccines by 2 million additional doses that will be allocated to the Venezuelan population that manages to regularize their immigration status in the country.
Variable income
Local equities closed the session lower amid a lull in global investor optimism, in addition to a mixed performance for commodities, amid a mixed performance for the region's main peers. The Colcap index fell -0.22% to 1,380.29 points, consolidating the break of a streak following three consecutive sessions of appreciation. Total share sales reached COP $142,120.44 million, exceeding the amount traded during Monday's session, with shares of Pref. Bancolombia, Ecopetrol, and GEB positioning themselves as the most traded of the day. The day's gains were led by shares of Pref. Davivienda, Grupo Sura, and Terpel, reaching appreciations of 1.81%, 1.23%, and 1.07%, respectively. Meanwhile, shares of Pref. Cemargos, Canacol, and Promigas led the downward trend within the benchmark basket toward the end of the session, posting declines of 1.93%, 1.82%, and 1.25%, respectively.
Money Exchange
The Colombian peso (COP) depreciated 0.34%, reaching $3,581.10 pesos per dollar, trading at US$1005 billion. This was a day in which the currency failed to take advantage of the dollar's weakness, largely driven by the drop in consumer confidence in January, which fell by -22.8% due to the various blockades in the region. Additionally, Brent crude oil prices limited the Colombian currency's losses. Finally, the pair reached a high of COP$3,597.00 and a low of COP$3,566.00, and the current Representative Market Rate for Monday will be COP$3,583.
US stocks closed higher after midterm election results came in line with market expectations. Democrats will retain control of the US House of Representatives, giving them political control over President Trump, while Republicans have gained control of the Senate. With this reduced uncertainty, markets reacted positively.
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