Copper rises on supply concern and dollar falls

Bloomberg

Consumer confidence; Stock markets rise, crude falls: Colombia Today

(Bloomberg) – S&P futures and European stocks rise after the Federal Reserve said in minutes of its last meeting that there is still time to meet the conditions to reduce its asset purchase campaign. 10-year Treasury yield falls. Index Bloomberg Dollar weakens alongside MSCI emerging markets currency index. Oil futures fall in New York as the pandemic worsens in key regions, just as OPEC + prepares to increase supply in the coming months. In Colombia, Finance Minister Alberto Carrasquilla presented details of the reform proposal Government prosecutor where he confirmed that the executive expects an average annual collection of 2.2% of GDP until 2031. Meanwhile, President Iván Duque said that it will not be considered to increase the VAT tax on basic products of the family basket that have rates of 5% or 0% .The co-director of the Banco de la República, Carolina Soto, said that the possible elimination of the withholding tax on foreign bondholders could mitigate the risks of portfolio outflows in the midst of tighter financial conditions due to higher yields of US treasuries. On the other hand, according to local media, the government nominated Minister Carrasquilla as a candidate to preside over the Development Bank of Latin America CAF after the departure of Luis Carranza, who was also Peru’s economy minister. Fedesarrollo today publishes March data on the consumer confidence index, and where the median number of analysts surveyed by Bloomberg forecast an improvement to -12.4 compared to -14.6 in February. The peso depreciated 0.5% in Wednesday’s session and closed at 3,654.09 per dollar. Medellín, the second largest city in the country, and the department of Antioquia where it is located, will be in total quarantine from this Thursday at 8:00 p.m. to 5:00 a.m. on Monday, April 12 due to an increase in cases of coronavirus and hospitals reporting that they no longer have availability of ICU beds. As of April 6, Colombia had a total of 2,578,601 doses applied and 471,789 accumulated second doses. Yesterday 11,381 new cases of coronavirus were reported and 243 deaths were registered, its highest level since mid-February, of agree with da cough of the Ministry of Health. With this, the number of total confirmed cases rose to 2,479,617 and the deaths reached 64,767.Colombia ranks twelfth in the world in total cases of contagion, surpassed by the US, Brazil, India, France, Russia, and the United Kingdom. , Italy, Turkey, Spain, Germany and Poland, according to data from Johns Hopkins. In terms of deaths, the country ranks eleventh. According to Bloomberg calculations: Cases + 0.5% vs + 0.4% moving average 7 days Deaths + 0.4% vs + 0.3% moving average 7 days Positivity tests 21 , 5% vs 24.1% 7-day moving average All events in local time INTERNATIONAL: Members of the Federal Reserve agreed that the US economic recovery was far from over when they met last month, According to the minutes of the meeting Although recent data has shown a significant improvement in the labor market, the economy remains far from the bank’s objective of achieving maximum employment and a sustainable inflation of 2% Mexico’s annual inflation rate increased beyond the upper limit of the target range to the highest level since December 2018, amid a sharp increase in energy costs, and increasing pressure on Banxico Consumer prices rose 4.67% in March compared to the previous year, in line with estimated it n average of analysts surveyed by Bloomberg. Banxico, as the central bank is known, is targeting an inflation rate of 3%, plus or minus one percentage point. Mexico’s central bank is weighing an incipient recovery with rising inflation. Governor Alejandro Díaz de León said in an interview last month that officials will take a data-dependent approach to future policy decisions TO BE PENDING: In Colombia: Consumer Confidence March; its T. -12.4, previous -14.6 Auctions: Expansion operations include 1-year repo for COP1 trillion and 32-day repo for the same amount This week: Filing of the tax reform in Congress International: 7:30 am: US initial requests unemployment subsidies April 3; its T. 680,000, previous 719,000 5pm: Peru meeting rates Fed Agenda: 10am: Bullard (St. Louis) talks about US economy and monetary policy 11am: Powell participates in event on the global economy during IMF meetings 1pm: Kashkari (Minneapolis) talks about panorama This week: April 5-11: Spring meetings International Monetary Fund and World Bank (virtual, details here) April 11: Presidential elections in Peru (first round) and Ecuador (second round) Relevant agendas: South America, USA, Mexico, Brazil, Europe, NEWS: Colombia would mitigate Outflows without bond tax: SotoColombia rejects Glencore’s request to return mining titles Colombia points to income of 2.2% of GDP with reform: Minister Duque says that Colombia will not raise VAT on basic products Tax on the wealth of millionaires gains support in Latin America Government postulates to Carrasquilla as CAF presidential candidate: Republic COMMENT: Oxford Economics increased its inflation forecast for the end of 20 21 to 3.1% from 2.7%, almost ruling out movements in interest rates for the rest of the year “Colombian prices rose 0.51% m / m in March, significantly above our forecast of 0.3% m / m. The inflationary surprise was concentrated in food and housing, which alone explained all the monthly variation in total inflation, “writes analyst Felipe Camargo in a note.” The combination of a fall in the peso despite record levels in WTI prices plus the weak base effects of the second half of 2020 risk a faster convergence of the CPI to this year’s target. But this is unlikely to last, as available capacity remains ample and prospects for activity remain weak given the slow pace of vaccination in the country so far. ”He expects inflation to temporarily reach the 3% target and that food and energy prices moderate “We believe that BanRep will remain stationary for most of 2021. We believe that convergence to the target from 2022 onwards will require a persistently accommodative stance during the relevant monetary policy horizon (12- 24 months ahead) ”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source. © 2021 Bloomberg LP