Ibovespa operates in decline, waiting for Fed and BC

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The day before, the main index of the stock exchange rose 1.03%, to 113,430 points. Market follows the São Paulo Stock Exchange (B3). KEVIN DAVID/A7 PRESS/ESTADÃO CONTENT The Ibovespa, the main index of the São Paulo stock exchange, the B3, is falling this Wednesday (1st), awaiting decisions on interest rates in Brazil and the United States. At 10:06 am, the Ibovespa fell 0.11%, to 113,308 points. See more quotes. The day before, the index rose 1.03% to 113,430 points. With today’s result, the index closes January with an increase of 3.37%. Initial plugin text What’s messing with the markets? The monetary policy decisions of the Federal Reserve (Fed, the central bank of the United States) and the Brazilian Central Bank should guide the markets this Wednesday. The Federal Open Market Committee (FOMC) of the Federal Reserve releases its monetary policy decision at 4 pm. The basic interest rate is between 4.25% and 4.5% and the expectation is for an increase of 0.25 percentage points, to between 4.5% and 4.75%. At 4:30 pm, Fed Chairman Jerome Powell holds a press conference to comment on the decision. A US private sector job creation survey for January will also be released. The previous reading was opening 235 thousand jobs. The expectation is to create 178,000 jobs. For Rico’s team, the data point to a continued deceleration of inflation in the US. However, with the risk of recession still present, the market remains cautious with risky assets. For Rafael Scardua, a partner at Matriz Capital, if there really are signs of easing in the increase in interest rates in the US, the markets should react positively. “If the decision makes room for the fall in interest rates to begin, companies will have more room to expand.” Already here, the Monetary Policy Committee (Copom) announces, from 6:30 pm, the decision on the basic interest rate of the Brazilian economy, the Selic, currently at 13.75% per year, to be practiced until March 22 de 2023. According to a survey carried out by Valor PRO with 106 financial institutions consulted, there is unanimity for the permanence of the rate. Jaiana Cruz, financial planner and partner at AVG Capital, believes that the Selic drop may only become a reality from the second half of 2023, “because the scenario remains full of uncertainties”. “As we begin to see lower inflation, the BC will act to make the interest rate compatible. But today we have a scenario of fiscal risks and, until we see inflation actually improving, I believe that the strategy will follow maintenance of interest”, foresees Ricardo Jorge, specialist in fixed income and partner of Quantzed. Investors are also keeping an eye on the internal elections in Congress this week and on the next steps of the president of Petrobras, Jean Paul Prates. In addition, Americanas is still in focus. B3 reported the withdrawal of the company’s shares from its indexes after the announcement of the judicial recovery, with debts of R$ 43 billion. Despite the exclusion of the B3 stock indices, the company’s shares continue to be traded, and have accumulated a drop of 81.87% in the year. In the week, however, the high is 45.83%.

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