Futures Ibovespa records high following abroad, on Fomc decision day

The Ibovespa futures opened higher this Wednesday (26), with the futures contract maturing in February 2022 advancing 0.79%, at 111,665 points, at 9:10 am (Brasília time). Until then, the index follows the performance of most international stock exchanges, which are advancing, recovering from yesterday’s lows.

In the United States, on the day of the decision on the new interest rate by the Federal Open Market Committee (FOMC), the Dow Jones, S&P 500 and Nasdaq futures rose, respectively, 1.11%, 1 .48% and 2.07%.

The market expectation is that the base rate will be maintained by the directors of the Federal Reserve, between 0% and 0.25%, but it is expected that the institution and its president Jerome Powell, who participates in a press conference after publication of the decision, bring more messages tough in their speeches.

“Investors await the pronouncement of economists at the Federal Reserve, which should signal future plans for raising interest rates and reducing its balance sheet. The consensus prices up to four highs in 2022, while we expect three”, comment analysts at XP Investimentos in morning call.

In corporate news, Microsoft Corp stock advanced in pre-opening trading after the tech giant projected revenue for the current quarter above Wall Street’s targets.

Read more: Fed to indicate interest rate hike in March amid fight against inflation

In Europe, in addition to the Fed’s decision, investors also continue to monitor tensions between Russia and Ukraine. The country commanded by Vladimir Putin yesterday intensified its military maneuvers on the border, on the eve of a meeting scheduled for today, which, in addition to officials from the two states in question, will be attended by Germans and French.

The splinters continue to weigh on the price of oil, which has another high day. WTI barrel for March is up 0.56% to trade at $86.08. Brent, which is a parameter for Petrobras (PETR3;PETR4), rose 0.80% to US$ 88.91.

“Brent oil is approaching $89 a barrel, the highest level in 8 years. US inventory levels are low and tensions over Ukraine have also contributed to pressure on prices. According to Bloomberg news, OPEC and its allies are expected to stick to their plan and ratify another modest production increase next week.”

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The European indices, even with the tension, extend the high of this Tuesday’s trading, recovering from the sudden drops of the second. Germany’s DAX is up 2.19%. London’s FTSE rose 1.69%. The STOXX 600, across the continent, is up 1.96%.

In Asia, the indices closed without exact direction. Japan’s Nikkei and South Korea’s Kospi dropped 0.44% and 0.41%, respectively. Mainland China’s Shanghai and Hong Kong’s HSI advanced 0.66% and 0.19%.

IPCA-15 on the domestic agenda

In the domestic market, investors monitor the publication of the IPCA-15, a preview of inflation, for January. The index rose 0.58% on the month, higher than the consensus of 0.43%, and 10.20% on the year, compared to a projection of 10.04%.

“The recent rise in commodity prices should keep short-term inflation under pressure, despite the relevant monetary tightening already implemented by the Central Bank of Brazil,” says XP.

The yield curve, with an eye on inflation, is advancing en bloc. The DI maturing in January 2023 is up 12 basis points to 11.95%. The one due in January 2025 rises ten points, to 11.10% and the one for the same month of 2027, 5 points, to 11.18%.

In addition to the IPCA-15, the internal market also monitors the Federal Government’s movement on the fuel PEC, which provides for a reduction in taxes on fuel and electricity – which, however, is not foreseen in the 2022 Budget and which is coming being seen as a dribble to the Fiscal Responsibility Law (LRF).

The future dollar, on the other hand, retreated 0.32%, to R$ 5.432. The commercial dollar dropped 0.17%, at R$5.425 on purchases and at R$5.426 on sales. The Brazilian currency advances against its American pair, despite what is presented by the DXY, which is up 0.16%.

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About Abhishek Pratap

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