The announcement of reinforcement measures announced by the President of the United States, Joe Biden, calmed the markets. In Asia, most stock exchanges closed higher and in Europe all rose, except for the British stock market.
The UK grew 1.1% in the third quarter, slightly less than expected. Market sensitivity is high and any frustration with economic activity has affected investors.
British growth is likely to suffer in the last quarter of the year due to the Ômicron variant and the new restriction measures adopted to contain the contagion.
Brazil
The National Congress approved the Public Budget for the year 2022. The PEC dos Precatórios, which made it possible to break the spending ceiling and the delay in the payment of debts, released more than R$110 billion in spending free of fiscal rules. The exact amount depends on the final inflation result of 2021, which comes out in January.
Deputies and senators guaranteed BRL 4.9 billion for the electoral fund, BRL 1.7 billion for a salary increase for police officers and BRL 16.5 billion for the so-called “secret budget”, via rapporteur’s amendments.
Associations of public servants have already started to take a stand and it is possible that protests from the categories that were not contemplated with salary increases will occur.
In the foreign exchange market, investors are starting to pay more attention to the interventions of the Central Bank (BC). In December, the BC sold almost US$ 4 billion dollars, most of it in cash, with the price rise.
The dollar remains above R$ 5.70, a high level, even taking into account the greater pressure on demand in the last month of the year.
This Wednesday (22) there is a sale of exchange rate swaps for overhedge, which the BC has been doing every Monday and Wednesday.
Agenda of the Day
The day’s agenda includes a lot of economic data from the United States. We will have the country’s third-quarter GDP, with a forecast increase of 2.1%. Personal consumption inflation index, the PCE. In addition to the disclosure made by the FED (Federal Reserve System) of Chicago about the national activity in November and consumer confidence in December.
In Brazil, the approval of the Budget is reflected. The Central Bank publishes external accounts for November and greater forecast of current account deficit after the negative balance of trade in the month. The result should close with a deficit of U$ 6.7 billion dollars.
Reference: CNN Brasil
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