Ibovespa opens higher, following global optimism

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Last Friday, the main index of the Brazilian stock exchange fell 0.58%, to 115,313 points. SP stock exchange. BRUNO ESCOLASTICO/PHOTOPRESS/ESTADÃO CONTÚDO Ibovespa, the main index of the São Paulo stock exchange, B3, opened higher this Monday (11), on a day marked by optimism in global markets, after more positive signs coming from the China and expectations for inflation data in Brazil and the United States. At 11 am, the index rose 0.56%, to 115,960 points. See more quotes. Last Friday (8), the Ibovespa closed down 0.58%, at 115,313 points. As a result, the index began to accumulate: drops of 2.19% in the week and 0.37% in the month; and an increase of 5.08% in the year. What’s moving the markets? What’s moving the markets? Following a weaker week due to holidays here and abroad, trading sessions around the world this Monday are influenced by more positive signals coming from China, the second largest economy in the world. Consumer inflation in the Asian country rose 0.1% in August, against market projections of a 0.2% increase. Producer inflation fell 3.0%, against an expected drop of 2.9%. More controlled inflation, according to analyst Vitor Miziara, encourages markets because it shows that the Chinese government can promote new interest cuts and other economic stimuli to boost activity. How the crisis in China’s real estate sector could impact Brazil’s economy Inflation is also a topic of attention in Brazil and the United States, with the release of consumer price indices in both countries scheduled for the next few days. In both cases, the numbers will be important to guide the steps of central banks at their next meetings, which take place next week. In Brazil, the market expects the BC’s Monetary Policy Committee (Copom) to promote yet another cut in the Selic, the basic interest rate, which is currently at 13.255 per year. Inflation data from August may dictate the magnitude of this cut, although most projections are for a drop of 0.5 percentage points. In the United States, the expectation is that the Federal Reserve (Fed, the American central bank) will keep interest rates unchanged, between 5.25% and 5.50% per year, because inflation in the country remains under pressure. Analysts at BTG Pactual, however, highlight that US Treasury Secretary Janet Yellen stated in an interview that she is “increasingly confident that the United States will be able to contain inflation without major damage to the job market.” Today was also the day for the release of another Focus Bulletin, a BC report that brings together analysts’ projections for the main Brazilian economic indicators. This week, expectations for inflation, the Gross Domestic Product (GDP) and the exchange rate in 2023 rose: projections for inflation this year point to an increase of 4.93%, above the BC’s target – which is 3.25%, ranging from 1.75% to 3.75%; expectations for GDP increased to 2.64%; the market also expects to see the dollar more expensive at the end of the year, trading at R$5.

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