On a day marked by domestic political turmoil, after President Jair Bolsonaro granted a pardon to deputy Daniel Silveira after his conviction in the STF, and also by concerns about high inflation in the world and prospects of higher interest rates in the United States, the Brazilian market is experiencing very negative numbers. The dollar exceeded R$ 4.80 – at 3:15 pm, it was quoted at R$ 4.8122, an increase of 4.15%. The Ibovespa, in turn, was down 2.78%, at 111,169.42 points.
The scenario, which had been bad since the market opened, worsened after US Treasury Secretary Janet Yellen said that inflation “will be with us for a while longer”. During an interview with broadcaster CNBC, she said there was a possibility that imposing a ban on imports from Russia’s energy sector would eventually drive prices up around the world.
“The Beige Book (released on Wednesday by the Federal Reserve, the US central bank) is still priced. Despite the strong inflation in the US, there is still a lack of manpower for the production chain to normalize, and this tends to put more pressure on prices” , evaluates Victor Hugo Israel, a specialist in variable income at Blue3.
In addition, adds Israel, on Thursday (21), Fed Chairman Jerome Powell indicated a half-percentage point increase in US interest rates in May. “And that is precisely what the market has been pricing in, a stronger tightening by the Fed, which was already a more natural move, but which the Fed did not accept”, he assesses.
Sectors linked to consumption and more sensitive to the inflationary scenario, such as retail and construction, did not come out unscathed on this negative Friday for the markets. Among retailers, Via ON dropped 3.98% and Magazine Luiza ON, 2.50%. In the case of construction companies, MRV dropped 3.31% and Gafisa, 2.82%. In addition to Janet Yellen’s warning about US inflation, European Central Bank (ECB) President Christine Lagarde also said today that there is a “strong chance” of interest rate hikes in the euro zone later this year.
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