Ibovespa operates with volatility, with concerns about the global economy

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Yesterday, the index fell 0.53%, to 114,982 points, renewing the lowest level since June. The biggest sequence of falls until then had been 12 consecutive trading sessions in 1970, from May 26 to June 11 of that year. Ibovespa Freepik The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates with volatility this Friday (18), oscillating between highs and lows, after 13 consecutive trading sessions of decline, in the biggest sequence of devaluation in history . The market continues to monitor the direction of interest rates in the United States, after the Federal Reserve (Fed, the American central bank) indicated that it may carry out further increases in rates. In addition, investors are keeping an eye on the situation in China, which is showing signs of an economic slowdown. At 11:15 am, the index rose 0.14%, to 115,145 points. See more quotes. The previous day, the Ibovespa closed down 0.53%, at 114,982 points. With today’s result, it started to accumulate: drops of 2.61% in the week and 5.71% in the month; gains of 4.78% in the year. What is messing with the markets? In Brazil, there are no major highlights on the economic agenda. In the political scenario, the expectation continues for the definition of when the new fiscal framework, which brings rules for government spending, will be voted on in the Chamber of Deputies. Abroad, yields on US government bonds retreat in this trading session, after a day of strong advances the day before, after the Federal Reserve (Fed, the US central bank) said it could continue raising interest rates in the minutes of its last meeting. Cauê Ribeiro Valim, Allocation and Intelligence analyst at Avenue, points out that US Treasury rates maturing in 10 years reached their highest point since October 2022, precisely because the Fed “showed that it remains concerned about inflation”. Investors are also looking forward to the 2023 edition of the Jackson Hole Symposium, which begins next week. This is one of the most important economic events in the world, which takes place every year in the United States and brings together several authorities and important figures to discuss the directions of the largest economy in the world. In addition, what weighs on the markets today is still the concern with China, which has been showing signs of greater weakness in economic activity, with a sequence of indicators lower than expected by specialists. In the midst of this prospect of a slowdown in the second largest economy in the world, several companies have suffered in the country, with emphasis on the real estate sector.

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