The Ibovespa today (28) opened and operates at a high of 0.25%, at 108.649 points.

The Producer Price Index (IPP), the IBGE, fell 3.11% in the passage from July to August. It is the largest negative variation in the historical series, which began in 2014.

From June to July, the variation had been 1.13%. In the last 12 months, the high is 12.16%. In the year, 7.91%.

Producer Price Index (IPP)

This Wednesday (28), the Caged will be released, with the job openings with signed work cards in August. The projection is for 280 thousand new jobs.

Yesterday, the minutes of Copom were released, with justifications for maintaining the Selic at 13.75% a year. Stephan Kautz, chief economist of EQI Asset classified the minutes as “neutral to hard”, mentioning that the interest rate hike that developed countries are promoting will bring the activity down, which helps inflation.

However, it brings along the risk of global recession, which increases risk aversion, leading to the depreciation of the currency and Brazilian assets, which may cause inflation to rise or become more volatile in the short term.
For Kautz, the Central Bank will also need to understand what the next government will do in terms of fiscal policy, whether Lula or Bolsonaro is elected, which could affect expectations.
The IPCA-15, the inflation forecast, came in better than expected: deflation of 0.37%, when the projection of EQI Assete was a retreat of 0.18%.

The Ibovespa closed Tuesday (27) with a drop of 0.68%, at 108,376 points. During the day the index varied between 108,120 and 110,161 points. The financial volume was R$ 27 billion.

Foreign markets

Highlight today for the speech of Jerome Powell, president of the Federal Reserve (Fed), who speaks again after the interest rate hike of 0.75 percentage point last week. Investors are following closely, in expectation of clues about the next steps of monetary policy.

Also expected this week is the final reading of the second quarter U.S. GDP, which is expected to shrink 0.6%; and the PCE Index, the Fed’s favorite measure of inflation, which is expected to rise 0.1%.

The Nord Stream 1 gas pipeline connecting Russia and Germany through the Baltic Sea had two leaks reported, in yet another chapter of the energy crisis between Moscow and Europe.

New York Markets
Dow Jones: +0.35%.
S&P: +0.24%
Nasdaq: -0.05%
European Markets
DAX, Germany: -0.56%
FTSE, United Kingdom: -0.44%
CAC, France: -0.47%
FTSE MIB, Italy: -1.11%
Stoxx 600: -0.71%
Asian Markets
Nikkei, Japan: -1.50%
Shanghai, China: -1.58%
HSI, Hong Kong: -3.41%
Kospi, Korea: -2.45%
ASX 200, Australia: -0.53%
Brent (December 2021): US$85.96 (+1.28%)
WTI (November 2021): US$ 79.78 (+1.67%)
Gold futures (December 2021): US$ 1,692.10 (+0.35%)
Iron ore
Dalian Exchange: us$ 98.15 (-0.49%)