The week comes to an end with high expectations for Super Wednesday.
1) Future Dollar Above 5 Reais: It closes above 5 reais and the stampede of foreigners continues. In 2023, Brazil seemed to be the darling of the markets, but after the government’s orders and commands at Petrobras (BVMF:), the path was reversed. We have already lost in the first few months half of what was contributed by foreigners throughout last year!
2) Super Wednesday Moves the Markets: With expectations about interest rate cuts in the US, which are increasingly consolidated, bets for June are now turning to the fear that there will be fewer cuts in 2024. Speculators love this scenario of uncertainty!
3) Harvest Plan and Challenges in Agribusiness: After a 2023 in which Agribusiness was the protagonist of the beautiful GDP, 2024 seems to be different, with difficulties and a lack of incentive in the sector. We then see food prices skyrocketing and the government now wanting to support farmers. The problem is that in agriculture everything has its time, and it seems that the time for 2024 has already passed. These measures should take effect even in 2025, if they are firm and non-electoral proposals.
Analyst’s Opinion: We continue with the feeling of the end of the party, stock markets are still holding on to the good momentum of the American market, but with China weighing in and our state-owned companies under suspicion, we are left waiting for a solution. Super Wednesday on the radar and we will probably have surprises with fewer interest cuts, as inflation continues to weigh on the monthly bill.
But I want to hear from you, will the stock market rise or fall today?
