Ibovespa operates in decline, with Powell’s speech in focus

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On the eve, the main index of the Brazilian stock market rose 0.80%, to 104,700 points. Ibovespa Pexels The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates in decline this Tuesday (7), awaiting the speech of Jerome Powell, president of the Federal Reserve (Fed, the central bank of the United States ) to the US Congress. At 10:30 am, the Ibovespa fell 0.38%, at 104,289 points. See more quotes. On the eve, the Ibovespa rose by 0.80%, to 104,700 points. With today’s result, the index started to accumulate losses of 4.37% in the year. In the month, it has a positive variation of 0.01%. What is messing with the markets? The day’s attention is on the testimony of Jerome Powell, chairman of the Fed on monetary policy to the Senate Committee on Banking, Housing and Urban Affairs, scheduled for 12:00 GMT. Investors continue to seek information on the Fed’s next move in raising US interest rates. Meanwhile, trade data from China showed a drop in exports and imports in the period from January to February, pointing to continued weakness in demand for the country’s products. Among Brazilian indicators, the General Price-Internal Availability Index (IGP-DI) recorded a positive change of 0.04% in February, decelerating slightly from the rate of 0.06% in the previous month, informed the Getulio Vargas Foundation (FGV) . The result was above expectations in a Reuters poll of a drop of 0.01%, and led the index to accumulate a high of 1.53% in 12 months. According to André Braz, coordinator of price indices at the FGV, deflation in producer prices slowed down last month, but was offset by a cooling in the pace of rising consumer prices and in the construction sector, which helped to maintain the variation. average IGP practically unchanged. The Leading Indicator of Employment in Brazil advanced 0.8 point in February, to 74.7 points, offsetting the fall that had been registered in January, showed data released this Tuesday by the Getulio Vargas Foundation (FGV). The IAEmp, which anticipates the direction of the labor market in Brazil, had dropped by 0.8 points in the previous month. Despite the recovery of lost ground, the index remains at historically low levels, according to the FGV. “Expectations of the year’s economic slowdown have impacted companies’ hiring momentum, preventing the IAEmp from gaining momentum again in 2023”, explained Anna Carolina Gouveia, economist at Ibre/FGV. Finally, the Residential Rent Variation Index (IVAR), also calculated by Ibre/FGV, rose 1.06% in February, which represents a slowdown in relation to the monthly rate of 4.20% registered in the previous month. As a result, the accumulated rate in 12 months increased from 10.74% in January 2023 to 8.73% in February 2023. READ MORE Services sustain GDP growth, with tourism leading to the recovery of activities ruined by the pandemic High interest rates already reduced GDP in the 4th quarter and complicate 2023, say economists MÍRIAM LEITÃO: ‘The Bolsonaro government handed over to the Lula government already slowing down’ Initial plugin text

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