The Colombian Central Bank surprised investors last week with a cut in rates to 5.0%, its first since 2010. The Colombian economy had been one of the few in the region to continue a restrictive policy in the face of the global economic slowdown.
Strong talk by ECB President Mario Draghi and a better than expected 2nd quarter GDP report in the United States pushed developed and emerging markets up strongly last week.
After watching banks throughout the BRIC group roll under serious selling pressure, sometimes it’s nice to remember that there is finance stock in the emerging world that can still deliver blockbuster performance.
Trouble in Brazil and Argentina may have been dominating Latin American investment news, but that’s no reason for investors to shun the region.
Investors today reacted to a handful of earnings reports, mediocre unemployment data, and a better-than-expected Spanish bond auction. However, markets eventually soured on the prospect of calamity in Europe’s future. And the aftermath of Argentina’s decision to nationalize YPF continues to dominate global headlines.
Emerging markets and other risk-on investments took a hit last week as economic data from the U.S. and China both showed weakness in the global recovery story.
Compared to its CIVETS peers, Colombia seems to fly somewhat under the radar. However, by ignoring Colombia, the world is missing out on a compelling growth story.