Ibovespa has volatility this Monday

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Last Friday, the main index of the Brazilian stock market advanced 1.33%, to 117,019 Ibovespa Freepik . The main downward pressure comes from the roles of the mining and steel sectors, which retreated in the wake of iron ore prices in China. Investors still reflected an improvement in inflation expectations which, in turn, supported shares of companies sensitive to the Brazilian economy. At 11:15 am, the index had a slight increase of 0.01%, at 117,028 points. See more quotes. Last Friday, the Ibovespa rose 1.33% to 117,019 points. What is messing with the markets? In the domestic scenario, financial market economists reduced the inflation estimate for this year from 5.69% to 5.42% in the Central Bank’s Focus report, released this Monday (12). The drop in the projection for this year’s inflation happened after the release of the May IPCA, which added up to 0.23%. In the 12 months through May, official inflation totaled 3.94%. The numbers came in well below financial market estimates. Even with the retreat in the market’s inflation projection for 2023, it still exceeds the ceiling of the target set by the government, set at 3.25% by the National Monetary Council (CMN). It will be considered formally fulfilled if it fluctuates between 1.75% and 4.75%. Given this scenario, investors are still waiting for the next meeting of the Monetary Policy Committee (Copom), which should take place next week. Abroad, attention remains focused on the interest rate decision of the Federal Reserve (Fed, the US central bank), which should be released on Wednesday (14). Inflation data from the world’s largest economy, scheduled for tomorrow, are also on the radar. “There is a more positive bias to asset prices on Monday morning, and the majority bet that the Fed will ‘pause’ its rate hike cycle this week is the main reason,” said Guide Investments in report. It is important to consider, however, that despite the more optimistic sentiment of investors about a possible maintenance of interest rates by the US Central Bank, projections still indicate that the autarchy should raise the US basic interest rate once again by 0.25 percentage point. “What the market wants to look closely at is Powell’s statement and speech [presidente do Fed]in which there may be some indication of what the future steps of the American BC will be”, added the Guide. Still abroad, another point that is on the radar is China, after negative data from the country have increased expectations that the government of the Asian giant will be able to support its economy Initial plugin text

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