Market operates with fiscal crisis in Brazil and number of job openings in the US

The financial market starts this Friday (5) still with an eye on the fiscal crisis, which left the Brazilian stock market in the lantern of the world.

Markets opened higher echoing the US central bank’s decision on Wednesday (3). Investors are also analyzing the payroll data, which have just come out and showed that the United States created 604,000 jobs in October, above market expectations, which forecast the creation of 400,000 jobs.

Also in the United States, the market is keeping an eye on the vote on Joe Biden’s infrastructure package, which could take place this morning.

In Asia, stocks closed on a fall after a new default by a developer, Kaisa Holdings, the second-largest issuer of dollar bonds, only behind Evergrande. The news once again lit a warning about the crisis in the Chinese real estate sector.

In Europe, emphasis is given to the unexpected decision of BC of England. The president of the British BC said about a month ago that inflation was under pressure, suggesting that interest rates could rise ahead, but yesterday he decided to keep interest rates at 0.10%, surprising the market. The pound had its biggest drop since October.

Brazil

The stock market continues to take off from the maxims abroad. The Ibovespa fell more than 2% yesterday, closing at the lowest point in the year, close to 103,000 points.

Also yesterday, parties signaled that they were going to withdraw their support for the PEC from the Precatórios in the second round vote in the Chamber and the market reacted negatively.

Analysts assess that it is bad with the PEC, but worse without it because the worst alternative for the market is always to stay in the dark. Even though the PEC represents a weakening of public accounts and blown spending, investors do not like uncertainty and fear worse solutions.

As a result, the stock market, which lost 115,000 points after it became clear that the ceiling would be pierced, approaches 100,000 points with the total lack of perspective.

In fact, a report from the Bloomberg saying that with the Brazilian stock market at the lantern of global indices, Brazil has become a destination for bargain hunters.

The text highlights that the flow increased after JP Morgan assessed that the Brazilian market is bottoming out, offering probably the best entry point “that we will find soon”.

Another highlight in the domestic scenario is the 5G auction. With a collection of just over R$7 billion up to yesterday, it is already the second largest auction in history, only behind the pre-salt. The average premium was 250%, that is, the value was 250% above the minimum forecast by Anatel.

Telefônica, Tim and Claro won blocks in the most disputed band, of 3.5 ghz. But new operators also stood out such as Cloud2you, Unifique and Winity, as well as well-known names in the fiber broadband market or with mobile operation in some regions — Brisanet, Copel Telecom and Sercomtel. The auction continues today.

agenda of the day

Empty calendar here in Brazil. Outside, in addition to the payroll, the Fed releases consumer credit data at 4 pm.