Global markets operate in decline with the invasion of Ukraine. In Brazil, the earlier released unemployment rate is also a highlight.
Starting abroad, US futures are down more than 2%. The market deepens the slumps of recent days after Russian President Vladimir Putin began a military operation in Ukraine’s breakaway regions around 11 pm on Wednesday night (23) here in Brazil.
The Russian attack is taking place in at least 16 regions of Ukraine, including Kiev. CNN International footage shows missiles being fired from Russia. In addition, about 40 people, including civilians, were killed. Kiev residents form long lines for cars trying to leave the country.
The VIX, the market fear index, rose by more than 20%, approaching 38 points, showing that the market is at the highest level of tension since September 2020, one of the peaks of restrictions in the pandemic.
Stocks in Europe recorded strong drops, especially the Frankfurt Stock Exchange, which fell 5% in the morning of this Thursday.
The Russian stock exchange even suspended trading, but when it resumed operations, it dropped 45% and dropped 34% this morning. The ruble, the Russian currency, has reached an all-time low. Commodities linked to Russia and Ukraine such as natural gas, grain and oil soared. Oil reached US$ 105, the highest in 7 years. Now the price is at $101.
More economic sanctions are expected today. The European Union said it would announce a package to block Russian access to technology and strategic economic sectors.
But economists continue to judge that the Russians have sufficiently shielded their economy and sanctions for now should not deter the offensive. The fact that the Russians are backed by China also makes Russia less susceptible to sanctions.
Finally, in Asia, stocks closed all negative, reflecting the increase in risk in the world.
Brazil
In Brazil, the future Ibovespa reflects the increase in tension abroad. Nicolas Borsoi, economist at Nova Futura, believes that the day should be one of decline in local markets, with investors starting to price more drastic and adverse events, given the possibility of a more energetic response from the globe to the Russian invasion.
The unemployment rate, released this morning, fell to 11.1% in the fourth quarter, down 1.5 points from the previous period. For the year ended, unemployment stood at 13.2%, down from 13.8% in 2020.
Another highlight in the country is the balance sheet of Petrobras, which recorded a net profit of R$ 31 billion in the fourth quarter of last year, above the market’s expectations of R$ 23 billion. In the closed year, the profit was R$ 106 billion, the highest ever registered by a company listed on the stock exchange in Brazil.
Indexes
The Ibovespa dropped more than 2% around 10:30 am. Already the dollar rose more than 1%.
Agenda of the Day
In addition to unemployment, the balance sheets follow with Vale, IRB and Ambev, which reported a 45% drop in profit this Thursday.
In the US, it has weekly unemployment claims and also data on new homes
Source: CNN Brasil
