The rise and fall of stocks will be particularly observed during the next few days. In a week of interest rate decisions around the world, from Switzerland to South Africa, markets are already pricing in likely rises in benchmark rates, divided only on how aggressive the Bank of England (BoE) will be.
It is in this climate that the week picks up.
On Monday (19), Wall Street even closed higher, with the thesis that the increase in interest rates in the United States, forecast at 0.75 pp, was already in prices. On Tuesday morning, however, US futures soon turned lower, in yet another typical day in 2022 when reliefs are temporary and the trend is down.
In Europe, the producer inflation data in Germany, at 45.8% in the annual comparison, reinforces the thesis that surrounds the market: that the rampant inflation, mainly in European countries and the USA, will be treated with the bitter medicine interest rate hikes, which slow the economy and raise the prospect of recession for next year.
In Asia, stocks closed higher, following Wall Street. The Central Bank of China, in a monetary policy meeting, decided to keep the reference rates unchanged – a move that should be mirrored by the Bank of Japan, which will probably maintain an ultra-stimulating posture to inject dynamism into the economy.
Brazil, like the rest of the world, is keeping an eye on the move that the Fed should make at this Wednesday’s meeting, as it deals with the pressures that the political debate exerts on the market.
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
