Ibovespa

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The main index of the Brazilian stock market fell 0.48%, to 103,121 points this Monday (14). Ibovespa Pexels The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened slightly higher this Tuesday (14). At 10:05 am, the index rose 0.12%, to 103,244 points. See more quotes. With Monday’s result, the index has accumulated a drop of 1.73% in the month. In the year, the indentation is 6.03%. 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 and with the new credit risk in the banking sector in the country. On Friday, US authorities announced the closure of Silicon Valley Bank (SVB), a bank that finances startups. The news of the bankruptcy, the second largest in the US banking sector, caused apprehension among SVB customers who were unable to move the money invested in the bank. The impact of the demise of SVB is not yet clear, but US economic experts say they do not believe that the bank’s failure will cause a domino effect similar to the one that led to the 2008 financial crisis. The International Monetary Fund (IMF) said on Sunday that is monitoring the potential financial stability implications of the collapse of Silicon Valley Bank, but said it is confident Washington is taking appropriate regulatory action. “We are closely monitoring developments and potential implications for financial stability, and we have full confidence that policymakers in the United States are taking appropriate steps to address the situation,” an IMF spokesman told Reuters in a statement. . On Sunday, US officials launched emergency measures to bolster confidence in the banking system after the failure of Silicon Valley Bank threatened to trigger a broader financial crisis. After a dramatic weekend, regulators said customers of the failed bank would have access to all their deposits from Monday, and created a new instrument to give banks access to emergency funds. The Federal Reserve has also made it easier for banks to borrow in emergencies. The bank’s closure followed interest rate hikes that hit tech start-ups and an attempted capital increase that spurred a run on withdrawals. While the measures provided some relief for Silicon Valley companies and global markets on Monday, concerns about banking risks remain and cast doubt on whether the Fed will stick to its plan of aggressive interest rate hikes. “We believe that the measures taken by the Fed, Treasury and (Federal Deposit Insurance Corp – FDIC) will decisively break the psychological ‘cycle of doom’ in the regional banking sector,” Karl Schamotta, chief market strategist at Corpay, told Reuters. “But fair or not, the episode will contribute to higher levels of volatility, with investors cautiously watching for further cracks to emerge as the Fed’s policy tightening continues.” Analysts at Órama say in a report that since 2008 there has not been a setback of such expressive magnitude in the American banking system. “The FDIC (a kind of US FGC) guaranteed that it will honor deposits of up to U$ 250,000 as of Monday, the 13th. The problem with this story is that about 90% of the amounts deposited in the institution are above that amount” , says the text. “To make matters worse, as this bank was very important in the context of the technology sector, many companies in the segment, as well as private equity funds and fintechs, held significant deposits in the institution.” 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. In Brazil, the Focus bulletin shows that financial market economists raised this year’s inflation estimate from 5.90% to 5.96% and also started to project a greater expansion of the Gross Domestic Product (GDP), from 0.85 % to 0.89% in the last week. Initial plugin text

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