The exchange rate in Brazil had fallen sharply and the stock market took a breath this Wednesday morning (10), after the release of the US consumer price index.
At 11:27 am, the spot commercial dollar fell by 1.75%, quoted at R$5.039 on sale. On the Brazilian Stock Exchange, the Ibovespa index rose 0.94% to 109,674 points.
The US consumer price index was unchanged in July, after rising 1.3% in June, according to the US Department of Labor. Projections by the Reuters agency indicated an increase of 0.2% in the index last month.
The deceleration of American inflation led investors to bet on a drop in interest rates in the country and, consequently, on the devaluation of the dollar.
On Tuesday (9), gains in banking sector shares added to the positive performance of the raw materials sector boosted the stock market’s high, which resisted a day of appreciation of the dollar and rising interest rates.
The Ibovespa, the stock exchange’s parameter index, rose 0.23% to 108,651 points. This was the sixth consecutive increase in the indicator, which advanced against the main world markets.
Among the papers that had the greatest weight in this result, Itaú Unibanco rose 2.61% and Vale increased 2.07%.
Itaú’s net income of R$7.7 billion in the second quarter of 2022 gave the banking sector a boost in this session.
Travel company CVC is down 10.96%. Investors bet on the devaluation of the company after JP Morgan has lowered the prices of the company’s shares.
In New York, the most important stock indices fell. Dow Jones, S&P 500 and Nasdaq lost 0.18%, 0.42% and 1.19%, in that order.
The apprehension coming from abroad contrasted with positive signs in the domestic scenario.
The minutes of the Central Bank’s Copom (Monetary Policy Committee) pointed to the stabilization of interest rates, while the monthly deflation registered by the IPCA in July confirmed the expectation of price deceleration.
Data on US inflation on Wednesday offer clues as to whether or not the Fed will keep up the pace of its monetary tightening.
Last week, job creation above expectations for July surprised the market.
This indicated that the US economy was not in recession, despite two consecutive quarterly declines in GDP (Gross Domestic Product).
As a result, investors are back to considering that the Fed will maintain a similar level of interest rate hikes from the last two meetings, of 0.75 percentage point.
Now, with inflation slowing, the market tends to consider that the Fed could actually be less aggressive.
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