Understand everything that will move the financial market and the world of investments this Friday (10), with the Café do Mercado podcast, produced by Market Monitor.
Today’s episode is now live on the main podcast platforms. Just click on your preferred platform to listen: Spotify; Deezer; Amazon Music; Google Podcasts; Anchor. Or listen by clicking below:
This Thursday’s session reflected market expectations, with the stock market falling and the dollar rising, as predicted after the Copom’s decision to reduce the basic interest rate by 0.25%. The Ibovespa registered a drop of 1%, while the dollar rose 1%, reflecting investors’ concern about upcoming market movements.
Copom, interest and inflation
The division in the Copom, which resulted in a tight 5 to 4 vote to cut interest rates, generated uncertainty about the next decisions. The president of the Central Bank, Minas Campos Neto, had to use Minerva’s vote to break the tie, indicating possible changes at the next Copom meetings.
This uncertainty directly impacts the prospect of future interest rate cuts and the containment of inflation, since the reduction in the basic rate is a measure to control inflation.
International
On the international scene, the previous day was marked by data from the United States that showed a weaker labor market, which increases expectations of interest cuts there. However, this perspective did not reflect positively on the Brazilian market, which had a day of decline despite the favorable external scenario.
For Friday, United States futures markets point to a negative correction, following the optimism of the previous day. In Asia, the market presented a mixed scenario, with China and Hong Kong on the rise, while Japan and South Korea recorded declines.
Investors face a complex scenario, with fluctuations in international markets and the repercussions of Copom’s decisions on the Brazilian economy. The day promises to be challenging, especially after the recently released results, such as the 45% drop in Petro Reconcavo’s net profit, reflecting the performance of smaller oil companies.
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