Global markets keep an eye on the conflict between Russia and Ukraine on Tuesday morning (8). In the domestic scenario, the focus is on the minutes of the Monetary Policy Committee (Copom).
Starting abroad, US futures are trading slightly lower. Next Thursday (10) consumer inflation in the United States will be released.
With inflation expected to rise to the highest level in four decades, investors are pricing in higher rates, with the 10-year government bond rate at 1.9%.
Analysts estimate that the American market depends on a diplomatic solution in Ukraine to start a recovery.
Europe
In Europe, stock markets operate mixed, between caution with US inflation data and strong corporate balance sheets. Buoyed by higher oil prices, British Petroleum posted its biggest profit since 2013.
Yesterday, Vladimir Putin and Emmanuel Macron met to discuss the crisis in Eastern Europe. The French president claimed that there were “points of convergence”, but the Russian president made it clear that Europe will enter an armed conflict if Ukraine joins NATO (North Atlantic Treaty Organization).
Macron and Ukrainian President Volodymyr Zelensky meet this morning.
Asia
In Asia, stocks also closed mixed. In China, they fell after the US added 33 Chinese companies with export restrictions.
Also noteworthy is the collapse of the sale of ARM to VIDIA, which would be the biggest deal by chipmakers in history. After the failure, Softbank, ARM’s parent company, said it should IPO ARM in March.
Brazil
Coming to Brazil, the highlight of the day is the minutes of the Monetary Policy Committee (Copom) on the decision to raise the basic interest rate – the Selic – by 1.5 pp to 10.75%.
Among the main points, the Central Bank (BC) said that policies to reduce prices can generate more inflation, in a clear allusion to the Proposed Amendment to the Constitution (PEC) on fuels.
With Brazil once again being the largest real interest payer in the world, the foreign flow has been sustaining the fall of the dollar, which fell yesterday to R$ 5.25, the lowest level in 5 months. Rotation to commodities sustains the exchange despite fiscal risks.
With party leaders signaling that some measure to contain the rise in fuel prices must come out, since it is an election year, analysts warn that the risks of uncontrolled spending should weigh on the stock market sooner or later, in addition to saying that the reaction will only it is not worse at the moment because of the foreign flow.
In addition to the Copom minutes, FGV released the IPC-S, which repeated a rise of 0.49% in January.
The Ibovespa Futuro traded close to stability this morning, down 0.03% to 111,865 points, with the dollar falling 0.14% to R$5.28. The S&P 500 Futures is down 0.08% to 4,474 points.
Agenda of the Day
Today, the balance sheet of Bradesco and XP is planned, after the stock market closes. Outside, in the US, the trade balance and API oil stocks should be released in the morning in the afternoon.
Among the balance sheets, highlight for Pfizer, which falls 4% with forecasts on vaccines and medicines below market estimates.
Source: CNN Brasil
