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Markets indicate recovery day this Wednesday; Ômicron remains in focus

Markets are operating in a recovery mood this Wednesday (1st), with new news about the Ômicron variant generating optimism in the market around the world.

Abroad, the Ômicron variant remains in the spotlight, but with no news indicating greater risks than those already mapped. With that, the market corrects the falls of the last days.

Authorities in South Africa have been reporting that there are no serious cases related to the new strain and hospitalizations are recorded for people who did not take the vaccine, in most cases.

In the United States, the speech of the president of the American Central Bank, Jerome Powell, caused stress on Tuesday (30). He said that he will discuss the reduction of stimuli already at the next monetary policy meeting, on December 14th and 15th, and said that it is a good time to retire the expression “transitory inflation”. Despite the stress, American futures rise with the recovery climate in the world.

In Europe, indices also rise, despite weak retail and industry data in Germany. Also noteworthy is the Turkish lira, which renews lows after President Erdogan promised to boost investments and jobs with lower interest rates.

In Asia, stocks closed mostly higher with PMIs, activity data, positive in the region.

Also abroad, the Organization of Petroleum Exporting Countries (OPEC) meets this Wednesday and Thursday to discuss oil production volumes. Barrels rise nearly 5%, reflecting caution with the meeting and the prospect that Ômicron will not affect demand as much as initially forecast.

Brazil

Coming to Brazil, the PEC dos Precatórios passed in the Constitution and Justice Commission and can still be voted on in plenary this Wednesday. As expected, one of the highlights of the text is that it removes the need to indicate a source of revenue to pay for Brazil’s Auxílio, which is provided for in the fiscal responsibility law. The rapporteur, Fernando Bezerra (MDB-PE), changed the text so that this exemption from the source is restricted to 2022 and the rule returns in 2023.

Economists say that the PEC opens loopholes for uncontrolled public spending and circumvents fiscal rules. Even so, the stock market has been rising with the advance of the PEC, because the market assesses that it is the well-known path, and that other solutions to support Auxílio Brasil could be worse.

Investors are also monitoring a busy day in politics, with André Mendonça’s hearing.

Ibovespa operated close to stability at the opening. Before that, the future index rose 1.07%, to 103,630 points, with the dollar down 0.67%, to R$ 5.59. The S&P Futuro rises 1.33%, to 4,627 points.

Agenda of the Day

The FGV consumer inflation index has just come out. The IPC-S accelerated from 0.77% in October to 1.08% in November, driven by fuels and energy. On this Wednesday, the exchange flow will also be released, at 2:30 pm, and the trade balance at 3:00 pm.

Abroad, the day is marked by more speeches by Jerome Powell and also by the release of employment data, the ADP in November.

Reference: CNN Brasil

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