Ibovespa opens lower, with interest rates in Brazil and the US on investor radar

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In the last trading session of April, on Friday, the main index of the Brazilian stock market advanced 1.47%, to 104,431 points. Ibovespa operates at a low Freepik The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened the trading session this Tuesday (2) at a low, on the eve of the Copom and monetary policy decision also in the United States. At 10:07 am, the index fell 0.79%, at 103,605 points. See more quotes. Last Friday (28), the index rose by 0.60%, to 102,923 points. With the result, the Ibovespa accumulated the following results: Last week, the stock market had a decrease of 1.38%; In April, the Ibovespa gained 1.02%; In the year, however, it accumulates losses of 6.21%. What is messing with the markets? Analysts and investors await the Copom’s decision tomorrow, with expectations that the institution will maintain the Selic rate at 13.75% per annum, in order to control the rise in prices. The projections for the 2023 inflation continue to rise and above the Central Bank of Brazil (BC) target. According to the latest edition of Boletim Focus – a report that brings together the economic perspectives of several market specialists – the Extended Consumer Price Index (IPCA), which reflects the country’s official inflation, should show an increase of 6.05% this year compared to the previous 12 months. If the projection materializes, this will be the third consecutive year in which inflation is above the target – which for 2023 is 3.25%, ranging from 1.75% to 4.75%. Even with the high prospects for inflation, this week’s Focus also showed an increase in expectations for the Brazilian Gross Domestic Product (GDP) this year, from a growth of 0.96% in last week’s report to 1.00 % this week. On the international scene, attention is also focused on monetary policy decisions, mainly in the United States. This Wednesday, the Federal Reserve (Fed, the US central bank) announces its new interest rate. Market expectations, according to BTG Pactual, are for an increase of 0.25%, which would take rates to a level between 5.00% and 5.25%. High interest rates in the United States weigh against stock markets around the world. There will also be a decision on interest rates in the euro zone, on Thursday (4), with projections that the European Central Bank will raise rates by 0.50%. Initial plugin text

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