Ibovespa closes up 0.56% and the dollar is stable at R$5.11, waiting for Powell

O Ibovespa closed up 0.56%, to 113,531.72 points, this Thursday (25), in a session marked by volatility. O dollar closed the day stable, with a variation of 0.01%, at R$ 5.111, after showing fluctuations.

Both the Ibovespa and the US currency were impacted by financial agents’ expectations about the president’s speech from the Federal Reserve on Friday (26), which may bring more details about the next steps of US monetary policy.

The market believes that it will give clues about the next steps of the autarchy in the fight against inflation.

Fed officials have already indicated that the next rate hikes will be made depending on the data released between each meeting, thereby reinforcing the weight of indicators in market behavior and bets.

On Wednesday (24), the dollar rose 0.23%, to R$ 5.110. The Ibovespa varied by 0.04%, at 112,897.84 points.

overall feeling

Investors’ global risk aversion, triggered by fears about a possible generalized economic slowdown due to a series of interest rate hikes around the world to contain record levels of inflation, has varied in intensity depending on expectations about the interest rate hike cycle in the United States. United.

The process of raising the US rate continued in July with a new increase of 0.75 percentage point. However, the Federal Reserve has signaled that it could make smaller hikes as the country’s economy already shows signs of slowing, seeking to avoid a recession.

Higher interest rates in the United States attract investments for the country’s fixed income due to its high security and favor the dollar, but harm markets and stock exchanges around the world, including the North American ones.

Investors are also monitoring the situation of China’s economy, which is also showing signs of a slowdown linked to a series of lockdowns in relevant cities. The expectation is that the Chinese government will intensify an effort to stimulate the economy, while facing difficulties to reverse a situation of low consumption by the population, which impacts the country’s demand for commodities.

In the domestic scenario, the Benefits PEC which creates or expands social benefits with an estimated cost of R$ 41 billion, was poorly received by the market, as it reinforces the fiscal risk by bringing new spending above the ceiling.

Even so, the Ibovespa and the real found room for recovery with an improvement in the mood of the market, although they could still be harmed if there is a resumption of pessimism.

Up and down from B3

Here are the main highlights of Thursday’s trading session:

biggest highs

• Energisa (ENGI11) -2.77%;
• Eletrobras (ELET6) -1.78%;
• Cemig (CMIG4) -1.71%;
• Enegie (EGIE3) -1.50%;
• JHSF (JHSF3) -1.45%

biggest casualties

• Espadrilles (ALPA4) +10.06%;
• Blue (BLUE4) +5.62%;
• Goal (GOLL4) +5.49%;
• Petz (PETZ3) +5%
• Natura Group (NTCO3) +4%

*With information from Reuters