The Day at a Glance | March 11 2021

The Top

· The 84th Banking Convention be; Arturo Herrera and Alejandro Díaz de Leon are attending, and investors will stay focused on their input.

· New fiscal packaged is approved in the US; the only thing missing is Biden`s signature.

· European Central Bank decision; no changes in rates or the asset purchasing program.

· Markets optimistic in light of new fiscal package and the announcement of possible greater stimuli in Europe.

Economic environment

The European Central Bank held its monetary policy meeting, in which it left the interest rate and the asset purchasing program unchanged. However, the ECB stated that it would be willing to use 1.85 trillion euros from the Pandemic Emergency Purchase Program (PEPP) much more aggressively in order to avoid an increase in financial costs for the region and its businesses – due to the increase in long term yields, which could affect the zone`s recovery. Additionally, the central bank announced that credit facilities will focus on granting long term financing. The outlook regarding the Eurozone`s growth is still weak because of continued mitigation measures and a vaccine program that has been carried out more slowly, even though a more vigorous recovery is expected in the economy in the summer; the central bank made these statements after an increase in long term interest rates in the secondary market, in line with movements seen in the United States in recent weeks.