Follow the dollar rate this Wednesday – 02/22/2023 – Market

The Stock Exchange reopened at 1 pm this Wednesday (22), after the Carnival holiday, amid tensions in the external scenario and expectations with the projections of Brazilian inflation by the Focus bulletin.

At 1:15 pm, the Ibovespa was down 1.59%, oscillating at 107,000 points.

The Central Bank releases the bulletin for the week ended February 17, at 2 pm. In the previous bulletin, the average projection for inflation in 2023 rose for the ninth week in a row.

“At first, the B3 should sensitize a downward adjustment, because, in the last two days, we had the market outside in a correction movement, mainly due to market expectations regarding interest rates in the United States”, says Paulo Luives from Valor Investimentos.

The dollar advanced against the real in the first trades this Wednesday, in a shorter session and with the expectation of reduced volumes due to the return of Carnival, in the midst of a cautious international scenario before the release of the minutes of the last monetary policy meeting of the Federal Reserve.

At 1:07 pm, the commercial dollar was sold at R$ 5.18 in cash, an advance of 0.36%.

“In the exchange market, the movement may reflect the strengthening of the dollar, also influenced by the prospect of extending the cycle of monetary tightening in the US”, says Alexsandro Nishimura, from Nomos.

Data from central banks indicate that inflation is not relenting. In Germany, energy and food price pressures remained high due to the war in Ukraine.

German consumer prices, harmonized for comparison with other European Union countries, rose 9.2% year-on-year in January, data from the country’s federal statistics agency showed on Wednesday.

Asian stock markets broadly were in the red, with geopolitical tensions ahead of the first anniversary of Russia’s invasion of Ukraine and New York index selling dragging markets overnight.

The S&P 500 and Nasdaq ended Tuesday lower for a third straight session, with Wall Street also lower as investors interpreted a rebound in US business activity in February to mean that interest rates will need to stay high for longer. more time to control inflation.

The S&P Global Purchasing Managers’ Index (PMI), which reflects business activity in the United States, returned to growth for the first time in eight months in February. The 50.2 reading, up from 46.8 in January, was boosted by a robust services sector, according to a survey.

This Wednesday, one day after their worst performance of the year, the main Wall Street indices rose as investors awaited the publication of the minutes of the Federal Reserve’s last monetary policy meeting, in search of new clues about the trajectory of interest rates.

With inflation still far from the Federal Reserve’s 2% target and the economy retaining much of its vigor, money market participants are revising upwards, where they see the Fed Funds rates peak – currently at 5.35% in July and remaining close to these levels throughout the year.

The market did not work in the United States on Monday (20), when President’s Day is celebrated.

In Brazil, the Stock Exchange closed down on Friday (17th), but the performance in the week before the Carnival holiday was positive.

The Ibovespa closed down 0.70% to 109,176 points. In the week, the index accumulated high of 1%.

The commercial dollar depreciated 1% against the real last week. On Friday, the American currency was sold at R$ 5.164 in cash.

with Reuters