Investors continue to echo the US Central Bank’s reaffirmation of keeping interest rates low until the economy resumes
O financial market The Brazilian closed this Thursday, 8, in the positive field with global optimism after the Central Bank of the United States (Fed, in English) reaffirmed the policy of low interest the day before. In the domestic scenario, investors still reflect the risk of new interference in the Petrobras after President Jair Bolsonaro (without a party) criticized the 39% increase in natural gas and they are still analyzing the dinner between the presidential party and businessmen from different sectors on Wednesday night, 7. The dollar closed with a drop of 1.23%, to R $ 5.574, after hitting a maximum of R $ 5.617 and a minimum of R $ 5.540. The exchange rate ended the day before with an increase of 0.78%, to R $ 5.643. O Ibovespa, the main indicator of the Brazilian Stock Exchange, returned to 118,313 points when closing with an increase of 0.59%. Wednesday’s trading session closed with an advance of 0.11%, at 117,632 points. It is the best performance for B3 since February 19, when it ended at 118,430 points.
Markets around the world continued to echo the message of the US monetary authority to reaffirm its commitment to keep the interest rate low until the policy reflects job creation and inflation. The decision, already expected by most analysts, indicates that the Fed will maintain the dollar injection to heat up the world’s largest economy after the shock of the new coronavirus. Still in the United States, Democrats and Republicans are following debates over the approval of a $ 2.2 trillion package for infrastructure investments over the next eight years.
On the domestic agenda, the market also analyzed the outcome of the meeting between businessmen from different sectors of the economy with Bolsonaro and the delegation composed by ministers Paulo Guedes (Economy), Tarcísio de Freitas (Infrastructure), Marcelo Queiroga (Health) and Fábio Faria (Communication) ), plus the president of the Central Bank, Roberto Campos Neto, and general Augusto Heleno (Institutional Security Office). The president reaffirmed his commitment to the spending ceiling and again criticized social isolation measures imposed by states and municipalities. Also on Wednesday, Bolsonaro took a new fear of intervention in Petrobras by criticizing the 39% readjustment in natural gas last Monday, 5. The president classified the increase as “inadmissible”, but said he would not intervene in politics of prices.
Still in the domestic scenario, the market continued to follow the rising tensions of fiscal risk after the approval of the 2021 Budget by Congress at the end of March. The exclusion of funds for mandatory expenses and the increase of resources destined for parliamentary amendments opened a new friction front between the economic team and the parliamentarians. In a conversation with investors this morning, Guedes sought to minimize the imbroglio by stating that the obstacles are “temporary” and that there is no “fight” between the Executive and the Legislative.