The futures Ibovespa operates lower in the first trades, a behavior that is also seen in the New York premarket and in the European Stock Exchanges. Fears about interest rate hikes and risks of recession are once again bringing volatility to business, at a time when the stock market was rehearsing a recovery.
Investors will follow the speech of Federal Reserve Chairman Jerome Powell, who reports to the US Senate Banking Committee starting at 10:30 am (Brasilia time). The bet is that Powell should reinforce the need to raise interest rates in the US, more aggressively.
At 9:14 am (Brasilia time), the Ibovespa futures for August was down 1.73%, at 100,525 points.
The commercial dollar rises 0.26% to R$5.166 in purchases and R$5.167 in sales. The dollar futures for July rose 0.7% to R$5.180.
Interest futures operate with an upward trend in the longer contracts and a downward trend in the shorter ones: DIF23, stable, at 13.56%; DIF25, – 0.06 pp, at 12.40%; DIF27, – 0.05 pp, at 12.34%; and DIF29, – 0.05 pp, at 12.50%.
In the States, awaiting Powell’s speech, the Dow Jones futures were down 1.25%, while the S&P 500 and Nasdaq futures were down 1.41% and 1.57%, respectively.
The pan-European index fell 1.41%. In the UK, consumer inflation hit 9.1% in May, a 40-year record. The index was mainly driven by the soaring food prices.
Already vice president of the European Central Bank (ECB), Luis de Guindos, brought an optimistic forecast. He believes that the economic bloc’s inflation should slow down after the European summer.
in the segment of commodities, iron ore fell to its lowest price in 16 weeks on the Dalian Stock Exchange. Prices have plummeted in recent days with the prospect of oversupply of steel in China. Construction was halted due to torrential rains that caused flooding in different parts of the country. The extreme climate also brought a pessimistic view of the Chinese economic recovery, after a series of lockdowns.
Oil also trades lower in the futures market. In the United States, President Joe Biden is pushing for a federal fuel tax to be zeroed to give consumer relief at the pump. In New York, a barrel of WTI is down 5.3% to $103.70. In London, Brent fell .54% to $109.45.
Technical analysis by Pamela Semezatto, investment analyst and specialist in day trader by Clear Corretora
“Another day of indecision for the IBOV in the region of 100,000 points. It has not yet shown strength to continue the fall and neither strength to buy to characterize a false breakout. If it misses yesterday’s low, I believe the downward movement could accelerate and look for the next support at the 94,000 point region.”
“Started to fail above previous highs, but still no continuity on the downside bars. Still in wide lateralization between R$4,700 and R$5,300.”
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