Market more optimistic with the stock market and less with public accounts; Fed publishes minutes

The start of the 2022 election campaigns has been given, and Brazil has both feet planted in the political arena. As usual, the market is expected to feel the turmoil that the dispute traditionally causes and that should intensify until October.

The inauguration of Alexandre de Moraes in the Superior Electoral Court (TSE), last Tuesday (16), brought together big names in current politics under the same roof and, also for the broad defenses of democracy and the electoral system, generated the perception of that Brazilian institutions can indeed withstand the brunt of the polarization installed in this period.

At the same time, the scenario can become a shield for investors, who are looking for space and breath to make riskier resource allocations. The moment has allowed the stock market to recover: from the last month until now, the Ibovespa has marked sharp rises in relation to the sudden drop registered in mid-July.

There is also an improvement in expectations for economic growth and for inflation this year, including as a result of incentives to lower fuel prices and support the cost of living.

They usually say in the economy that the market is not afraid of crisis, but rather of the dark. Here it is still valid: although there is no lack of light for 2022, whose economic scenario is practically given, there are still many doubts about the fiscal policy of the new government, which darkens the year 2023.

In this Wednesday’s episode (17), the CNN Money brings a Bank of America (BofA) survey that identifies the division set for now: what to expect from the performance of the economy in 2022 and what are the risks that are presented for 2023. In the international market, eyes are on the release of the minutes of the Federal Reserve System, the central bank of the United States, which is due to be published this afternoon.

Presented by Thais Herédia and Priscila Yazbek, CNN Money presents a balance of news issues that influence markets, finances and the direction of society and power dynamics in Brazil and worldwide.