Ibovespa rises with payroll and national industrial production, dollar grows

Global markets operate in high on the morning of Friday (3) after the release of employment data from the United States. The Ibovespa, around 12:00, rose 1.43%, to 105,961.41 points, and the dollar grew 0.22%, quoted at R$ 5.655.

210,000 jobs were created (outside the agricultural sector) last month, the Labor Department said in its jobs report this Friday. Economists consulted by Reuters had expected 550,000 jobs to be opened. Estimates ranged from 306,000 to 800,000 jobs.

November was the second full month of hiring after the US government-funded jobless benefits ended in early September. October data has been revised upwards to show 546,000 job openings instead of the 531,000 previously reported.

The unemployment rate dropped to 4.2%, the lowest level since February 2020, from 4.6% in October.

However, the result came well below the forecast of analysts consulted by The Wall Street Journal, who projected the generation of 573,000 jobs. Thus, the US currency operated in a fall because the result sparks a possible warning that the Fed (Federal Reserve, Central Bank of the United States) may postpone its plan to raise interest rates, since there are fewer Americans employed.

The report came out two days after Federal Reserve chairman Jerome Powell said he must accelerate the reduction in his massive bond purchases.

This movement also followed the fall of the dollar index, which measures the performance of the currency against six strong rivals, to the low of the session, in the wake of the data, although the index has already regained lost ground, showing a rise of 0.15% per around 11:30 am.

Industry production

The domestic market is still digesting a drop in Brazilian industrial production in October, according to data released by the IBGE (Brazilian Institute of Geography and Statistics).

Production began the fourth quarter still struggling, with an unexpected drop in October for the fifth month in a row in the wake of damage caused by the Covid-19 pandemic.

In October, production decreased by 0.6% compared to September, accumulating 3.7% of losses in five months. Compared to October 2020, there was a drop of 7.8%.

Both results were much worse than expectations in a Reuters survey of economists, up 0.6% month-on-month and down 5.0% year-on-year.

“With five months of decline, the sector is 4.1% below the pre-pandemic level of February last year,” says the manager of the survey, André Macedo to Reuters. “And the sector is 20.2% below the peak of May 2011. Month after month the industry loses intensity and strength”.

Omicron

And the coronavirus variant is also on the market’s radar. The lack of information still afflicts the market about the damage that Ômicron can leave in business, health and the economy.

So far, the executive of Moderna has said that it may have an effective vaccine by March, Stephen Hoge, while BioNTech, a partner of Pfizer, has declared that its immunizing agent should work against the new variant.

In all, five cases of Ômicron were confirmed in Brazil.