Ibovespa opens falling and the dollar fluctuates, with expectations for interest rate decisions here and in the USA

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Last Friday, the North American currency fell 0.24%, quoted at R$4.9105. The main stock index on the Brazilian stock exchange ended with an increase of 0.62%, at 128,967 points. Dollar operates on the rise Karolina Grabowska Ibovespa, the main stock index on the stock exchange, opened lower this Monday (29), starting a week marked by monetary policy decisions in Brazil and the United States. The dollar fluctuates. Here, the Monetary Policy Committee (Copom) of the Central Bank (BC) decides the new Selic, the basic interest rate, currently at 11.75% per year. The market expectation is for a further reduction of 0.5 percentage points, taking the Selic rate to 11.25% per year. In the United States, the market believes that the Federal Reserve (Fed, the American central bank) should maintain its interest rates between 5.25% and 5.50% per year, but providing some signal about when the cycle of cuts will begin. See below for a summary of the markets. Dollar At 10:05 am, the dollar fell 0.04%, quoted at R$4.9086. See more quotes. Last Friday (26), the North American currency fell 0.24%, quoted at R$4.9105. With the result, it accumulated: drop of 0.33% in the week; and gains of 1.20% in the month and year. Ibovespa At the same time, Ibovespa was down 0.23%, at 128,671 points. On Friday, the index rose 0.62%, to 128,967 points. With the result, it accumulated: increase of 1.04% in the week; falls of 3.89% in the month and year. READ ALSO CASH OR CARD? What is the best way to take dollars when traveling? DOLLAR: When is the best time to buy the currency? Understand what makes the dollar rise or fall What is moving the markets? The week features some releases of economic indicators, but the highlight of the agenda is interest rate decisions here and abroad. In Brazil, although a new cut of 0.50 percentage points is already widely expected by the market, investors should pay attention to the Copom minutes, with the signs that show the Committee’s view on the economy and, mainly, on the fiscal issue of the country. In the United States, attention should also be paid to the minutes, because global investors await details about the Fed’s direction in relation to interest rates, there is a lot of expectation for when the institution should begin the cycle of rate cuts. In addition to the macro scenario, some corporate news also affects the markets this session. The main one is about the bankruptcy of Chinese real estate giant Evergrande. The Hong Kong court accepted a request and declared the company bankrupt this Monday. Judge Linda Chan decided to liquidate the developer, which has more than US$300 billion in total debt. Evergrande was unable to offer a concrete restructuring plan, more than two years after defaulting on its debt and after several court hearings. “It’s time for the court to say enough is enough,” Chan said in court. Understand more details of the decision and find out what is happening now in the article below: In the domestic scenario, Magazine Luiza reported that its board of directors approved a private capital increase of R$1.25 billion. The contributions will be made by the Trajano family, the company’s controllers, with R$1 billion, and by the bank BTG Pactual, with R$250 million. “The capital increase represents a relevant transaction for the company’s strategic positioning”, said Magazine Luiza. “It is a demonstration of the controllers’ confidence in the company and its business model, with the potential to increase its shareholding from 56.4% to 58.4% of total capital.” For Nicholas Kawasaki, chief strategist at Nova Futura Private, the capital increase is positive to help reduce debt and boost the company’s new investments. “It shows commitment and that the controller believes in the company’s recovery,” he says.

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