The Bundesbank Generates Volatility and Uncertainty

Yesterday's session in the United States was marked by sales and volatility. The German Constitutional Court's deliberations and more especially the statements of the president of Bundesbank (German Central Bank), who allied himself with the usual doubts about the stability of asset purchase programs in the United States and Japan and left the major U.S. indices with average cuts of almost 1%.

What is worrying is the Bundesbank attitude of permanent and frank opposition to the initiatives of the ECB to overcome the crisis, being against any flexibility and realism that the economy is needing. Given the technical and intellectual respect that the Bundesbank deserves, I fear that their position is spreading distrust towards the ECB, fueling euroscepticism in German media and among the public opinion.

In the Asia-Pacific region, the session has been marked, one more day, by volatility. The Nikkei, which started downwards around -2% during the session and closed with a cut of -0.21%.

In Europe it begins with a mixed or red tone. CPI data known in Germany, Spain, France and Italy, without major changes.

This morning, we will know the employment data in the UK, which are expected to reduce unemployment claims, as the rate remains unchanged at 7.8% (this data can result in interesting movements in the pound against other currencies).

The Eurozone industrial production is expected slightly worse compared to the previous month (a reading better than expected could lead to an upward movement in a market that has endured heavy selling pressure over the past days).

In the United States, we will know the MBA mortgage applications of last week and data of last month's budget (not too relevant data). Remain vigilant to possible rebounds in equities after corrections we saw in the last two days, however, the bias seems to be confirmed as bearish.

It will be also remarkable the meeting of the Bank of New Zealand to be held this evening, although a cut in interest rates is not expected, but we should remain vigilant because it could result in significant changes in the currency and commodities.