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The market operates with an eye on the vote of the PEC dos Precatórios and the US interest rate decision

The financial market starts this Wednesday (3) with an eye on the interest rate decision in the United States and on the PEC (Proposed Amendment to the Constitution) of the Precatório.

Starting from abroad, the markets open stable awaiting the monetary policy decision in the United States and correcting the highs of the past few days. The indices have broken records with company balance sheets exceeding expectations.

Today, the market expects the US Central Bank to finally announce the start date for tapering, the reduction in bond purchases. Analysts are also awaiting signs of interest rate hikes.

The decision of the monetary policy committee comes out at 3 pm and Jerome Powell, BC president, speaks at 3:30 pm.

Investors also monitor COP26 in Glasgow, which today features speeches by central bankers.

Outside, attention is drawn to the 218% rise in Avis rental company shares after the company announced it will adopt electric cars in the US and after results beat estimates.

In Asia, the indices closed down. In China, winter worries the government. Officials urged local governments and the population to stock up on food for the coming months in the face of new outbreaks of coronaviruses, the oncoming cold snap and tensions with Taiwan, which also heighten tensions with the United States.

Brazil

The Central Bank released today the minutes of the last meeting of the monetary policy committee. The highlight of the text is that the Copom evaluated the Selic to be higher than 1.5%.

Another highlight of the day is the government’s articulation to vote today for the PEC dos Precatórios.

Arthur Lira and members of the administration are using parliamentary amendments to try to get more support from congressmen.

The PEC foresees the opening of a space in the spending ceiling of more than R$91 billion to cover Auxílio Brasil and other expenses, including amendments.

The market sees that the PEC greatly worsens the situation of public accounts by loosening fiscal rules, but also thinks it would be an option less worse than extending the aid, via public calamity decree, which is seen as anything goes and would increase even more plus the fiscal risk.

On the companies’ radar, the highlight is Nubank, which detailed the IPO numbers and drew attention by announcing that it will offer BDRS for free to the bank’s customers. The BDRS are receipts for shares traded abroad, as the shares will be traded in New York.

agenda of the day

Today, the Copom minutes, the trade balance data for October, at 3:00 pm, and the possible vote on the PEC will be released.

In the United States, a highlight was the interest rate decision, and data on private employment also came out, with the creation of 571,000 jobs in October, above expectations for the creation of 400,000.

Reference: CNN Brasil

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