The week starts with the markets in the negative field, as they reverberate the movements of the last three days around the world.
Since Friday (7), the US employment data has caused a wrinkle of concern among investors. With the unemployment rate showing an unexpected drop, from 3.7% to 3.5%, and the opening of vacancies exceeding the expected contingent of 250 thousand, to 260 thousand, the reading is that the North American labor market has keeps warm — in another episode of the maxim “good data is bad for the markets”.
That’s because, with demand for products remaining high, prices should follow the same path, dashing hopes that the Federal Reserve (Fed, the US central bank) could moderate the rise in interest rates to contain inflation. Now, the expectation is that the posture hawkish (“more aggressive”, in economist) will hold for longer, reinforcing fears that a cooling economy could lead to a global recession.
The escalation of tensions between Russia and Ukraine over the weekend also implies a riskier scenario. On Saturday, the only bridge linking Russia and Crimea was bombed and, in response, Moscow sent missiles to Kiev on Monday, in the biggest show of force and intensity since the start of the war.
In Asia, Shanghai and Hong Kong closed sharply lower, pulled by drops in shares of technology giants and chipmakers. The move stems from the Biden administration’s announcement on Friday, which announced more US export control measures to China. This could be the biggest change in technology shipping policy between the two countries since 1990.
The Asian country also records the biggest increase in Covid-19 cases since August this year, just days before the Communist Party Congress, which takes place every five years.
In Brazil, presidential elections continue to dominate public debate as tensions between Luiz Inácio Lula da Silva (PT) and Jair Bolsonaro (PL) intensify, leaving the private, industrial and productive sectors on high alert.
Presented by Thais Herédia and Priscila Yazbek, CNN Money presents a balance of news issues that influence markets, finances and the direction of society and power dynamics in Brazil and worldwide.
*Posted by Tamara Nassif
Source: CNN Brasil
