Without trading on B3, Brazilian ADRs follow global markets and retreat on Corpus Christi holiday

With B3 closed this Thursday (16), due to the Corpus Christi holiday, the market thermometer for investors migrates ADRs (American depositary receipts), receipts for shares of Brazilian companies traded on US stock exchanges.

And the morning did not start with a positive atmosphere in the markets. At 10:55 am, the Dow Jones Brazil Titans 20 ADR index, which brings together the main Brazilian companies listed on the B3 with share receipts traded in the US, dropped 3.65%, quoted at 16,806 points.

The retreat even surpassed that of some of the main American stock indices, which returned part of the gains obtained the day before. The S&P 500 was down 2.71% in the same hour, to 3,687 points, while the Dow Jones was down 2.27%, to 29,976 points. The Nasdaq, in turn, fell 3.04% to 10,761 points.

Among the 20 main Brazilian ADRs, the biggest drops occurred among the airlines Gol and Azul, followed by CSN and Petrobras. None of them registered high.

Check out the performance of the main ADRs of Brazilian companies this Thursday (16), the day of the closed Stock Exchange in Brazil:

CompanyADRPrice (in US$)Variation (%)
Itaú UnibancoITUB4.483.55
Telefonica BrazilLIVE9.112.25
Ultra GroupPMU2.442.01

The market movement was the reverse of what happened on Wednesday (14) – the day the Fed (Federal Reserve, US central bank) announced a 0.75 percentage point increase in the country’s interest rates, the largest since 1994, and the Monetary Policy Committee (Copom) of the Central Bank raised the Selic to the level of 13.25% per year, after promoting a rise of 0.50 percentage point in the rate.

On the stock exchanges, the indices – both the Ibovespa and the Americans – rose. The general market interpretation was that the Fed was right in its deliberation. Jerome Powell, chairman of the Fed, admitted in an interview that the 0.75 point rise was an outlier, but anticipated that a new high – of 0.50 or 0.75 point – is the most likely move at the next meeting. of the monetary authority in July.

Both the Dow Jones, the S&P 500 and the Nasdaq ended Wednesday up more than 1%. Here, the Ibovespa followed the international markets and also closed higher, albeit lower. The index rose 0.73%, to 102,806 points, in a movement interpreted by market agents as a natural recovery after eight consecutive trading sessions of decline.

On Thursday, however, market sentiment turned sour again in the face of monetary policy decisions by other central banks around the world.

The Bank of England (BoE), for example, decided to raise its benchmark interest rate for the fifth time in a row, by 25 basis points, to 1.25% per annum, amid persistently high inflation in the UK.

According to a statement from the BoE, six of its nine policymakers voted to raise the benchmark interest rate to 1.25% on Thursday. The three dissidents advocated a more aggressive increase in the rate, to 1.50% a year.

The Swiss Central Bank (SNB) announced an unexpected interest rate increase of 50 basis points, the first since September 2007. The country’s basic rate reached the range of -0.75% to -0.25% per year. , in an attempt to contain domestic inflation – which accelerated to an annual rate of 2.9% in May, the highest level in more than a decade.

“It’s about time we got out of this artificial world of massive predictable liquidity injections, where everyone gets used to zero interest rates, where we do silly things, whether it’s investing in parts of the market where we shouldn’t invest or investing in the economy in a way that It doesn’t make sense,” Mohamed El-Erian, chief investment adviser at Allianz, said in an interview with CNBC.

This transition, however, should not go smoothly. “We see how increasingly likely a recession and higher unemployment will be needed to tame inflation, with such a bleak macro picture hanging over the markets,” he told the Reuters Geir Lode, head of global equities at Federated Hermes Limited.

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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