Ibovespa operates in decline this Tuesday, waiting for Copom interest rate decision

[ad_1]

On the eve, the main index of the stock exchange rose 1.46%, to 121,943 points. In July, the index accumulated gains of 3.27%. Ibovespa operates in low, pulled by the exterior. Freepik The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates in decline this Tuesday (1st), with expectations about the meeting of the Monetary Policy Committee (Copom) of the Central Bank, which defines the new level rates in Brazil this Wednesday. At 10:10 am, the index fell 0.74%, to 121,010 points. See more quotes. On Friday, the Ibovespa closed up 0.16%, at 120,187 points. With today’s result, the index started to accumulate: Increase of 3.27% in the month; Gains of 11.13% in the year. What is messing with the markets? Tuesday continues to wait for the monetary policy decision in Brazil. The Monetary Policy Committee (Copom) has meetings today and Wednesday to (probably) define the country’s first interest rate cut in two years. The financial market is divided over the size of the interest rate cut, between 0.25 and 0.50 percentage points. While part of the analysts believe that the Central Bank (BC) will remain cautious with monetary policy and prefer to go slowly, another group believes that the inflation and economic activity numbers already allow for a greater reduction. Abroad, eyes will be on the ISM industry survey, which should show that industrial activity in the United States contracted less in July than in the previous month, and on employment data. “Since the release of the weaker-than-expected June US inflation report, the market is increasingly hopeful that the narrative of a soft landing for the economy holds up,” said Jane Foley, head of currency strategy. from Rabobank. In China, the State Council on Monday announced measures to restore and expand consumption in the auto, real estate and service sectors, with the aim of fully playing the “fundamental role” of consumption in economic development. This comes after Chinese officials pledged last week at a Politburo meeting to step up support for the economy and strengthen countercyclical adjustments in the second half of this year. Authorities, however, have not released many details about their plans. “Most investors we spoke to were still skeptical about the possible measures the government will implement,” analysts at UBS said in a note.

[ad_2]

Source link