Death by the omicron variant and interest in the US slow the stock market

The opening of the session on the Stock Exchange this Monday (13) indicated a high day, but the news of the first death caused by the omicron variant of the coronavirus in the United Kingdom and the expectation of an increase in interest rates in the United States took the impetus away from the market.

The Ibovespa, the benchmark of the Brazilian Stock Exchange, closed down 0.35% to 107,383 points. The indicator came to rise 1.6% when reaching the maximum of the day, of 109,492 points.

The dollar rose 1.06%, to R$ 5.6740. The Central Bank still sold US$905 million (BRL 5.09 billion) on the spot market in the early afternoon, but this only took away some of the strength of the US currency against the real.

Also in the morning, British Prime Minister Boris Johnson reported the first death from the strain announced by a country since it was identified by scientists in South Africa.

The London Stock Exchange closed down 0.83%. The falls also marked the day for the other major stock indices in Europe.

“Negative news about Covid-19 brings back the fear that restrictions on the movement of people may be resumed”, says Gustavo Cruz, strategist at RB Investimentos. “News of flight cancellations and hotel reservations in Europe already demonstrate that people have returned to adopting more cautious postures”, he comments.

In the American market, the news about the variant reinforced a selling trend already expected on the eve of the Fed’s (Federal Reserve, the US central bank) two-day meeting, which could indicate a stronger monetary tightening in the country.

Pressured by the biggest rise in consumer prices in almost 40 years, the Fed tends to signal next Wednesday (15) an increase in the country’s interest rates and a faster reduction in purchases of assets in the market. The measures, initiated during the pandemic to combat the effects of the economic stagnation, undermine the control of inflation.

“Risk aversion is mainly due to the Fed, which may increase tapering [jargão para indicar o afilamento dos estímulos econômicos], which generates some volatility,” says Mauro Morelli, chief strategist at the investment firm Davos.

In Wal Street, Dow Jones, S&P 500 and Nasdaq retreated 0.89%, 0.91% and 1.39%, respectively.

On the New York Stock Exchange, Nubank shares retreated 8.78%, in an adjustment movement in relation to the increase of more than 30% that had been accumulated in the first two trading sessions after the start of the public offering last Thursday (9th). ).

Brent crude yielded 1.05%, at US$ 74.36 (R$ 419.02). The commodity has been losing ground as new doubts arise about the effectiveness of vaccines against the omicron variant. Petrobras’ preferred shares yielded 0.61%.

In a session marked by casualties spread across sectors most vulnerable to measures to restrict movement, Magazine Luiza fell 5.02%.

Americanas shares retreated 4.49% in the first trading session after the approval of the merger of the company’s shares with those of Lojas Americanas, which also fell (-3.59%).

Vale rose 2.92%, the main high among the most traded securities of the day. The mining company benefited from statements by the government of China, the main buyer of Brazilian iron ore, which indicated the creation of stimuli for the country’s economic growth.