Markets operate with caution this Wednesday, waiting for the minutes of the American BC

Markets started Wednesday (5) cautiously, waiting for the minutes on the monetary policy decision in the United States.

The US Monetary Policy Committee (Fomc), which takes interest rate decisions in the US, released this Wednesday a document that should provide more details on the pace of stimulus withdrawal and interest rate hikes.

Yesterday, futures rates rose, indicating that the market expects a tougher stance. In addition to pricing an anticipation of interest rate hikes, with the possibility of an increase already for the month of March, the long part of the curve also rose. On Wednesday, the yield on ten-year bonds reached 1.688% at the maximum.

In Europe, service PMIs, which show activity in the sector, came in below expectations, but the indication of expansion brought optimism, and the indices rose. The perception that the Ômicron variant of Covid-19 is less severe and signaling that the pandemic may be becoming endemic also helps at discharge.

Also yesterday, the Organization of Petroleum Exporting Countries (OPEC) approved the increase in February production by 400,000 barrels per day. There was a concern that production would increase further and generate an excess of supply. As the pace was maintained, the Brent barrel rose and hit $80.

In Asia, stock markets closed with news about regulatory tightening in China, and with interest rate hikes in the United States affecting emerging countries.

Also on the international scene, OhmResearch, an analysis house, highlights the 4% drop in Tesla’s shares and the 12% rise in Ford’s. CEO Roberto Atuch Junior said performances show that the stock rotation from growth to value is starting in earnest.

Brazil

Coming to Brazil, the high interest rate impacts the national market. As the US market is the safest in the world, its bonds already naturally attract global resources, but they are even more attractive with the prospect of higher yields.

This flow no longer helps the Brazilian stock exchange, and uncertainties in the economic scenario worsen the scenario.

The year began with signs of more spending and populist measures, with the elections approaching.

Several news matters in this regard: the leader of the Government in the Chamber, Ricardo Barros (PP-PR), criticized the spending ceiling and defended the relaxation of fiscal rules. The government approved an extension of the exemption, the exemption from the IPI, and is under pressure from federal employees for salary readjustments.

Finally, President Jair Bolsonaro (PL) was discharged from the hospital, where he had been admitted with a picture of intestinal obstruction.

The Ibovespa Futuro had a slight rise of 0.10% in the morning, to 104,438 points, and the dollar fell 0.38%, to R$ 5.66. The S&P 500 Future had a slight drop of 0.03% to 4,792 points.

agenda of the day

Here in Brazil, the PMIs result composite and services of IHS Markit, at 10:00 am, and the exchange flow, at 2:30 pm. The National Bank for Economic and Social Development (BNDES) holds the first public hearing on the capitalization of Eletrobras, to receive suggestions on the privatization process.

Abroad, Markit also discloses PMIs, with emphasis on the euro zone, which has already been released and stood at 53.3. At night PMIs come out in China.