After a rally in recent weeks, world stock markets open the month of September in the red.
The feeling now, as pointed out by analysts consulted, is that the markets are digesting the most aggressive speech of Jerome Powell, chairman of the Federal Reserve System (Fed, US central bank), last Friday (26). It is about the behavior of stock exchanges around the world that the CNN Money this Thursday (1st) turns around.
The Fed’s signals about a stronger interest rate stance, coupled with Powell’s speeches at the annual symposium in Jackson Hole, buried once and for all the concept of a “soft landing” in the US economy – one in which rising interest rates reference does not harm the activity so much. The forecast now is for a prolonged period of weak growth and high unemployment in the US.
Another factor that adds to the tone of the market’s pessimism is the weak activity in China, as shown by the Purchasing Manager’s Index (PMI) on the morning of last Wednesday (31). The industry entered contraction territory for the first time in three months, at 49.5 points in August, as a result of weak demand, the energy crisis and further outbreaks of Covid-19 halting production.
In Europe, inflation data and PMIs from the euro zone reinforce expectations that the ECB will raise interest rates next week. On this side of the globe, the Brazilian stock market detached itself from the rest of the world in August and grew 6.5% as a result of the measures adopted by the federal government.
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.
Source: CNN Brasil
