Market operates with an eye on voting of the PEC of Precatório and inflation abroad

The opening of the market this Tuesday (9) starts with an eye on the voting of the PEC of Precatório and, also, on the global inflation.

Abroad, markets open the day stable. Investors are cautious, waiting for important inflation data: today the producer inflation index in the United States is out and, tomorrow, there is consumer inflation. In China, producer and consumer inflation data come out at night.

Analysts await the data anxious to see whether or not the price hike can curb the sharp rises in the indices abroad.

In Asia, stocks closed mixed again, following a cautious climate in the global market. The highlight, in China, was Softbank shares, which rose 10.5% after the share repurchase announcement of nearly $9 billion.

In Europe, stocks are trading at a slight increase after Christine Lagarde, president of the ECB, said that current inflation is transitory and has brought some encouragement to the market.

On the national scene, the PEC dos Precatório is the great highlight. The second round vote in the Chamber of Deputies is scheduled for today.

The president of the House, Arthur Lira (PP-AL), and government allies say they are confident about the progress of the proposal. The opposition, on the other hand, questions its support for the text.

In addition, the STF (Supreme Federal Court) began to judge the injunction issued by Minister Rosa Weber, who suspended the payment of the rapporteur’s amendments. So far, four ministers voted to suspend the amendments.

The injunction is linked to the progress of the PEC because the rapporteur’s amendment funds have been used by the government to ensure support for the proposal. If vetoed, the government could lose bargaining power.

The market thinks the PEC is the least worst option among the alternatives that have already been suggested to pay for Brazil Aid, since other options can further worsen the situation of public accounts.

Furthermore, as the market does not like to be left in the dark, in a way, the proposal ends up being a more predictable path at this point.

The opposition even asked the STF to suspend the processing of the PEC, but Minister Rosa Weber just denied the suspension. She is the rapporteur for this and two other actions at the Supreme Court involving the proposal.