Follow the dollar rate and the stock market today (5) – 03/05/2024 – Market

The Brazilian Stock Exchange operated at a timid rise this Tuesday morning (5) supported by advances by Petrobras, Azul and Hapvida, but pressured by retreats by Vale and Vibra. The five shares were the most traded of the session.

In exchange rates, the dollar fluctuated, amid a climate of disappointment in the markets with the lack of stimulus from China, while following expectations for North American data and speeches from the president of the Federal Reserve (American central bank), Jerome Powell.

At 11:33 am, the Ibovespa rose 0.12%, to 128,494 points, while the dollar had a positive variation of 0.11%, quoted at R$4.952.

Financial agents noticed a gloom in global markets this Tuesday, after the start of the annual session of the Chinese Parliament did not bring clear stimulus plans, as was expected by some investors.

The Chinese government maintained last year’s target of economic growth “around 5%” for 2024, and announced plans for a budget deficit of 3% of economic output, up from 3.8% in 2023.

Recently, fears have grown about the health of the world’s second-largest economy, which has faced an uneven recovery from the Covid-19 pandemic.

“In the Brazilian context, caution in international markets influences the local environment, investors tend to maintain a more reserved stance, awaiting clearer definitions in the external scenario”, said Guide economists in a report to clients.

Meanwhile, Fed Chairman Jerome Powell will give testimony to lawmakers on Wednesday and Thursday, following recent moderation in market bets on interest rate cuts.

“Tomorrow’s Fed speech tends to indicate whether the bets for the American interest rate cut remain until the end of the second quarter or whether they can be brought forward,” said Matheus Massote, foreign exchange specialist at One Investimentos.

“In addition to Powell’s speech, our gaze turns to the labor market data in the United States which, if higher than expected, reverses bets and lengthens the expected deadline for the interest rate cut, especially because an accelerated economy could bring more inflation and the current Fed’s mandate is to contain it at all costs.”

The US government’s jobs report, to be published on Friday, is expected to show a still solid opening of 200,000 jobs, compared to 353,000 in January.

With Reuters