Ibovespa opens lower, with US employment data on the radar

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On the eve, the main index of the Brazilian stock market fell 1.38%, to 105,071 points. Ibovespa Pexels The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened on Friday (10th) with a drop, with investors attentive to the employment report in the United States and to the news about the new Brazilian fiscal framework. At 10:04 am, the Ibovespa retreated 0.35%, at 104,698 points. See more quotes. On the eve, the Ibovespa fell by 1.38%, to 105,071 points. With the result, the index started to accumulate gains of 0.13% in the month. In the year, however, it still has losses of 4.25%. What is messing with the markets? The market remains attentive to the interest rate scenario in the United States, as economic data from the country reinforce the perspective that the Fed should continue raising interest rates to try to contain inflation in the world’s largest economy. On today’s agenda is the publication of the employment report in the country, the payroll. The document is used by the Fed as a basis to help define the direction of interest rates in the country: strong data may indicate that the economy is not cooling down enough to reduce inflation – which reinforces the perspective of a stronger increase in basic rates by US Central Bank, as signaled this week by Fed chairman Jerome Powell. 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. Around here, investors await more details on the fiscal framework. On Thursday, the Minister of Planning and Budget, Simone Tebet, said that the rule is ready and will “please everyone”, because it will stabilize the public debt at the same time that it will allow the government to invest in the areas in which it considers priorities. “The framework that will come out is a framework that will please everyone, because it serves both sides, the side of concern with zeroing out Brazil’s fiscal deficit, which today stands at more than 230 billion [de reais, previsão para 2023]the concern is obviously to stabilize the debt/GDP, as the minister himself [Fernando Haddad] already mentioned, but in compliance with the determination of the President of the Republic that we cannot neglect the investments necessary for Brazil to grow again”, said Tebet. Asked whether the new fiscal rule will also please the financial market, the minister replied: “It will please everyone, including the market”. reevaluate the perspective of an earlier interest rate cut in the country Initial plugin text

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