Although the fighting has continued in Libya, and oil production there has dropped more than 1 million barrels per day, the market seems resigned to accept the turmoil as international markets were up and oil slid back from recent 2-year highs.
The S&P500 was up 0.89% via a boost from the financial sector, especially Bank of America who announced it’s reemerging growth and potential to increase dividends in the future. The Colombian Colcap index dropped 1.18% on the day and volume on the BVC was little changed from yesterday at roughly USD$85 million.
The infamous Dr. Doom, otherwise known as Nouriel Roubini predicted today that oil prices could reach $140/barrel and instigate a double-dip recession in some of the world’s largest economies. The professor also noted that higher oil prices would not likely lead to higher inflation in developed economies because of the existing slack in labor markets.
The U.S. dollar hasn’t fared well versus the majority of worldwide currencies and today the peso again picked up gains to close at $1,890.07 to the dollar.
Commodity markets were largely lower on the day as oil pared recent gains dropping to USD$104.78/barrel, a 0.24% decrease.