Ibovespa opens higher on Wednesday

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On the eve, the main index of the Brazilian stock market retreated 0.45%, to 104,227 points. Ibovespa Pexels The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened this Wednesday’s session (8) on a high. At 10:05 am, the Ibovespa rose 0.22%, to 104,456 points. See more quotes. On the eve, the Ibovespa fell by 0.45%, to 104,227 points. As a result, the index began to accumulate losses of 0.67% in the month and 5.02% in the year. What is messing with the markets? Yesterday, all the market’s attention was on the testimony of Jerome Powell, chairman of the Fed on monetary policy in the US to the Committee on Banking, Housing and Urban Affairs of the Senate. During the speech, Powell stated that the US Central Bank may review the end point of interest rate hikes in the country. “The data we’ve seen so far, and we still have other data to see, we still have significant data to see ahead of the meeting, suggests that the final rate we set may very well be higher than the one we set in December,” Powell told the Senate Banking Committee. The employment report to be released next Friday will be essential to determine whether the next readjustment in the interest rate will be 0.25 or 0.50 percentage points”, says a report by Genial Investimentos. “At the same time, the probability increased significantly that our interest rate projection between 6.0% and 6.5% per year at the end of the monetary policy adjustment process becomes effective.” monetary policy to the Financial Services Committee of the Brazilian Chamber of Deputies U.S. Representatives. In addition, at 4:00 pm, the Fed will release the “Beige Book”, a summary of current economic conditions that will serve as the basis for monetary policy discussions at the meeting scheduled for March 21st and 22nd. Higher interest rates in the United States increase the yield on the country’s government bonds, which are considered the safest in the world. This hurts risky assets like the stock market. “With central banks determined to defend their credibility, interest rates are likely to rise further and remain at tight levels longer than markets currently expect, particularly in the US and UK,” said Matthew Quaife of Fidelity International, to the Reuters agency. “We believe this cumulative tightening will lead to slower growth and ultimately cyclical recessions in the US, Europe and UK later this year or next.” Still in the US, the US Department of Labor’s Bureau of Statistics releases, at 12:00 am, the Jolts job vacancy survey for January. In December 2022, 11.012 million vacancies were opened. Opening expectation of 10.5 million. In Europe, the eurozone’s GDP was stagnant in the fourth quarter of 2022 compared to the previous three months, said the European statistics agency, slightly revising activity and employment growth figures downwards. In comparison with the same period of the previous year, the euro zone recorded expansion of 1.8%, Eurostat said in a statement. On February 14, the agency had released preliminary estimates of 0.1% in the quarterly comparison and 1.9% on an annual basis. The revisions further confirmed that the eurozone narrowly avoided a previously expected technical recession. On Eurozone employment, the figure was up 0.3% quarter-on-quarter from 0.4% previously reported. On an annual basis, there was an increase of 1.5%, in line with previous estimates. This brought the total number of people with jobs to 165 million, 3.6 million more than at the end of 2019, just before the Covid-19 pandemic. READ MORE Services sustain a rise in GDP, with tourism leading to the recovery of activities ruined by the pandemic High interest rates have already reduced GDP in the 4th quarter and complicate 2023, say economists MÍRIAM LEITÃO: ‘The Bolsonaro government handed over to the Lula government, already slowing down’ Initial plugin text

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