Ibovespa opens lower after Carnival, after new nuclear threats from Russia

[ad_1]

On Friday, the main index of the Brazilian stock market fell by 0.70%, to 109,176 points. Ibovespa Freepik The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates in decline this Ash Wednesday (22), still with an empty schedule due to the Carnival in Brazil, but reflecting geopolitical tensions after new threats Russian nuclear weapons and Federal Reserve (Fed) minutes. At 1:05 pm, the index fell 0.34% to 108,804 points. See more quotes. On Friday, the index fell by 0.70%, to 109,176 points. With the result, the Ibovespa managed to accumulate a rise of 1.04% in the week. In the month and in the year, however, it still has losses of 3.75% and 0.51%, respectively. What is messing with the markets? Investors await the publication of the minutes of the Federal Reserve’s last monetary policy meeting this Wednesday, in search of new clues about the trajectory of interest rates. There are doubts whether the institution will promote a more aggressive monetary tightening than was priced, after recent economic data came in stronger than expected. “The preview of the Purchasing Managers’ Index (PMI) in the United States registered 50.2 points, the highest level in eight months, returning to the expansionary level and suggesting economic resilience in the US. There was a recovery in the services sector, while manufacturing still showed a more timid recovery. As a result, the Federal Reserve may need to be tougher in the next interest rate increases to control price variation in the country “, says XP report. 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. In Europe, data released on Tuesday showed that economic activity in France and Germany had returned to growth territory, and supported the view that interest rates in both economies will remain higher for longer. On Wednesday, data showed that Germany’s inflation rate showed no signs of easing at the start of the year, as pressures on energy and food prices remained high due to the war in Ukraine. Still, European stocks have bounced so far this year against their US peers amid better weather conditions and the euro zone economy is expected to narrowly avoid a recession and get momentum from the reopening of the eurozone. China. Asian stock markets followed yesterday’s Wall Street session into the red as surprising strength in global services surveys fueled fears that central banks will have to raise rates further. To add tension to the market, Russian President Vladimir Putin suspended on Tuesday (21) the country’s participation in the latest nuclear arms control treaty made with the United States. She also warned that the Russians had made new strategic weapons available for combat. The two countries still have vast stockpiles of nuclear weapons left over from the Cold War, whose numbers are currently limited by New START, an agreement signed by the two countries in 2010 and which was supposed to be in effect until 2026. Putin announced the measure during his annual speech to the Russian elite , in which he pledged to continue Russia’s military operation in Ukraine and accused the US-led North Atlantic Treaty Organization (NATO) of inflaming the conflict in the mistaken belief that it could defeat Moscow in a global confrontation. Initial plugin text

[ad_2]

Source link