Ibovespa turns to negative following the exterior; Powell speaks again today
The Ibovespa opened today (23) in the positive, but turned to the negative, following the outside. At 10:32 am, it is down 1.51%, at 112,392 points.

The day’s agenda is weak, with only the FGV’s IPC-S, which did not register any variation in the third reading of September, accumulating a high of 5.11% in the last 12 months.

On Thursday (22), the market reacted well to the maintenance of the Selic at 13.75%, interrupting the escalation of interest rates.

One week before the first round of voting, new rounds of polls and TV debates are expected, with the political scenario dominating the news.

The Ibovespa opened today (23) in the positive, but turned to the negative, following the outside. At 10:32 am, it is down 1.51%, at 112,392 points.

The day’s agenda is weak, with only the FGV’s IPC-S, which did not register any variation in the third reading of September, accumulating a high of 5.11% in the last 12 months.

On Thursday (22), the market reacted well to the maintenance of the Selic at 13.75%, interrupting the escalation of interest rates.

One week before the first round of voting, new rounds of polls and TV debates are expected, with the political scenario dominating the news.

The bimonthly report, released by the government on Thursday (22), revealed a block of R$ 2.634 billion in discretionary spending in order to comply with the spending cap. The special secretary of Treasury and Budget, Esteves Colnago, explained that the blockade of contingent resources will only affect expenses that were not actually incurred.

The federal government also foresees, for 2022, a primary surplus of R$ 13.5 billion in the public accounts. If it comes true, this will be the first positive result for the government since 2013.

The Ibovespa closed Thursday (22) up 1.91%, at 114,070 points. The index, throughout the day, ranged between 111,818 points at the minimum and 114,392 points at the maximum. The financial volume was R$33.5 billion.


Markets abroad
Two days after the Fed’s decision to raise the interest rate by 0.75 point, Jerome Powell, president of the American central bank, speaks again, now in a speech at the event “Fed Listens: Transitioning to the Post-pandemic Economy”.

In an analysis for Valor Econômico newspaper, Stephan Kautz, chief economist at EQI Asset pointed out that, in the post-decision statement on interest rate hikes, the Fed admitted that the US economic situation may be getting worse than initially projected.

“Projections are for future interest rate hikes, while the Fed has downgraded growth projections and raised unemployment projections. Even so, inflation projections have been revised further away from the target,” warns Kautz.

According to him, the choice “got worse for the Fed, which will have to further damage growth and the labor market in order to control inflation.

Today is Purchasing Managers’ Indexes (PMIs) release day. In the euro zone, the composite PMI fell to 48.2 points (from 48.9), the lowest level in 20 months; the services PMI retreated to 48.9 (from 49.8); and the industrial PMI fell to 48.5 points (from 49.6). Scores below 50 indicate retraction of activity.

Oil reacts with a sharp drop this morning, of more than 3%, reflecting expectations of global slowdown.

New York Markets
Dow Jones: -1.31%.
S&P: -1.35%.
Nasdaq: -1.29%.
European Markets
DAX, Germany: -2.13%
FTSE, United Kingdom: -1.96%
CAC, France: -1.70%
FTSE MIB, Italy: -2.87%
Stoxx 600: -2.13%
Asian Markets
Nikkei, Japan: closed for holidays
Shanghai, China: -0.66%
HSI, Hong Kong: -1.18%
Kospi, Korea: -1.81%
ASX 200, Australia: -1.87%
Oil
Brent (December 2021): US$87.60 (-3.51%)
WTI (November 2021): US$ 80.56 (-3.51%)
Gold
Gold futures (December 2021): US$ 1,653.75 (-1.63%)
Iron ore
Dalian Exchange: us$ 101 (+1.34%)