O Ibovespa 🇧🇷IBOV) reversed the pace of increase in the trading session this Wednesday (30), awaiting the speech of the president of the Federal Reserve (Fed), Jerome Powell🇧🇷 Around 2:10 pm, the main index of the Brazilian Stock Exchange fell 0.62%, to 110,224 points.
powell should consolidate market agents’ expectations that the US central bank will slow down the pace of interest rate hikes at next month’s monetary meeting. The speech, possibly, more “dovish” would put a damper on fears of an economic slowdown.
The monetary policy meeting scheduled for December 13th and 14th should echo the speeches of Fed members who signal an increase of 0.5 percentage points, after four successive increases of 0.75 percentage points.
According to the analyst of BenndorfNiels Tahara, any sign of a lower increase in interest rates in today’s speech should reflect positively on the Brazilian market.
Despite this, Powell can signal that the inflation remains strong and there is the possibility of a higher increase in interest rates. In this eventual scenario, the Ibovespa should react negatively, as such action increases the strength of the dollar and harms the national scenario.
What makes the Ibovespa price today?
At the international level, the hope for the Chinese reopening continues and influenced the performance of the Ibovespa earlier.
Some regions of the Asian country have already changed restrictions and indicators show the costs of the recently imposed lockdowns, such as the industrial purchasing managers index (PMI), which had a much more intense drop than expected in November.
Part of the good mood of the B3 index still rested on the national scene. After the beginning of the PEC of the Transition in Congress, the perception is that the text can be dehydrated.
Follow Money Times on Linkedin!
Stay informed, post and interact with Money Times on Linkedin. In addition to staying on top of the main news, you have exclusive content about careers, participate in polls, understand the market and how to be at the forefront of your work. But that’s not all: you open new connections and find people who are a good addition to your network. No matter your profession, follow Money Times on Linkedin🇧🇷
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
