The harsh tone of the Fed, which raised interest rates by 0.25 point as expected but promised another six hikes for the year and a reduction in its balance sheet starting at the next meeting, scared investors and even dampened optimism. seen since the beginning of the day this Wednesday, 16.
But over the course of the interview with the president of the US Central Bank, Jerome Powell, without raising the tone, the assets were rearranged and returned more or less to where they were before the decision. The global improvement in the markets was supported, from the beginning, by the expectation of an agreement between Russia and Ukraine that would put an end to the conflict, in addition to signals from China about stimulus to capital and real estate markets.
As a result, stocks rose on Wall Street, while the dollar lost steam, even on a new day of oil retreat. The Ibovespa hitched a ride in this scenario and closed up 1.98%, at 111,112.43 points, interrupting a negative series that had already lasted four sessions, in which it accumulated a loss of 4.33%. The spot dollar closed down 1.27%, at R$ 5.0934.
In the New York stock exchanges, there was a loss of breath shortly after the Fed’s announcement and the signal was mixed, but then the momentum was resumed, with the financial and technology sectors among the highlights. The Dow was up 1.55% at 34,063.10 points, the S&P 500 was up 2.24% at 4,357.86 points and the Nasdaq was up 3.77% at 13,436.55 points.
Earlier, gains in Asia were well above those seen in the West on Wednesday, “with the promise that the Beijing government will take measures to ensure the sustainability of the economy”, notes Nova Futura Investimentos in a note.
Hang Seng led gains in Asia, with a jump of 9.08% in Hong Kong – the biggest since 2008 – to 20,087.50 points. Highlighted in Hong Kong, shares in Chinese e-commerce giant Alibaba soared 27.30%, the biggest increase on record in a single day. In China, the Shanghai Composite rose 3.48% to 3,170.71 points, and the less comprehensive Shenzhen Composite rose 3.62% to 2,086.24 points.
Elsewhere in Asia, Japan’s Nikkei index rose 1.64% in Tokyo to 25,762.01 points, while South Korea’s Kospi rose 1.44% in Seoul to 2,659.23 points, and the Taiex posted marginal rise of 0.09% in Taiwan to 16,940.83 points.
Major European stocks closed higher amid negotiations between Russia and Ukraine over the ongoing conflict in the region. The advance of the indices is still in the wake of the recovery of Asian stock markets.
In London, the FTSE 100 rose 1.62% to 7,291.68 points, and in Frankfurt, the DAX advanced 3.76% to 14,440.74 points. Advances in bank shares supported the Paris stock exchange and the CAC 40 rose 3.68% to 6,588.64 points, followed by the Milan-based FTSE MIB, which rose 3.34% to 24,284.85 points.
In the Iberian markets, the PSI 20 advanced 1.02%, to 5622.30 points, and the IBEX 35 gained 1.75%, to 8,380.40 points, according to preliminary data.
Oil futures contracts closed lower today, in a volatile session, in which the unfolding of the war in Ukraine continued to impact the prices of the commodity. In addition, the market paid attention to data on inventories in the United States and the monthly report from the International Energy Agency (IEA). At the end of the session, following the monetary policy decision of the Federal Reserve (Fed) to increase interest rates, the losses were amplified.
On the New York Mercantile Exchange (Nymex), the barrel of WTI oil scheduled for delivery in April dropped 1.45%, to US$ 95.04, while Brent for May dropped 1.89%, on the Intercontinental Exchange (ICE) , at US$ 98.02.