Ibovespa opens higher after GDP increases in the second quarter

After closing down by 0.82% the day before and ending the month of August with an appreciation of 6.16%, the Ibovespa started today’s session (1st) up 0.33%, at 109,885 points, around from 10:18 am (Brasilia time). The main index of the Brazilian stock exchange goes against the grain of the international market, which continues to reflect the fear of rising interest rates.

Here, the increase in GDP raised the index’s performance this morning. According to data from the IBGE (Brazilian Institute of Geography and Statistics), the Brazilian economy grew more than expected in the second quarter of 2022.

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The impetus was given by the recovery of the service sector and the increase in household consumption and investments, maintaining the pace seen at the beginning of the year despite inflation and high interest rates.

In the period, the Brazilian Gross Domestic Product increased by 1.2% compared to the previous three months, after growth of 1.1% between January and March, in the fourth quarter followed by positive rates.

Expectations for the Brazilian economy this year have been improving, while forecasts for GDP in 2023 continue to decline, in an environment of monetary and fiscal policies in opposite directions.

This performance of the activity is also a positive factor for the exchange rate, since it can stimulate the inflow of capital by investors who see greater dynamism in the economy.

This morning, the dollar retreated 0.09% against the real, at R$ 5.1961.

In the United States, Wall Street futures were down, still reflecting fears about rising interest rates in the country. Yesterday (31), the president of the Federal Reserve (US central bank) of Cleveland, Loretta Mester, said that it is too early to conclude that inflation in the country has already peaked.

“My current view is that it will be necessary to raise the benchmark interest rate to a little above 4% at the beginning of next year and keep it there; I don’t expect the Fed to cut its rate target next year,” Mester said.

Amid this scenario, the Dow Jones futures fell 0.50% to 31,374 points. The S&P 500 and Nasdaq were down 0.60% to 3,933 points and 0.78% to 12,190 points, respectively.

In Asia, stocks followed the negative performance of NY and ended the day mostly down. In Seoul, the Kospi was down 2.28%, and in Tokyo, the Nikkei lost 1.53%.

In Hong Kong, the Hang Seng dropped 1.79% and in Taiwan, the Taiex lost 1.94%. In China, Shanghai lost 0.54% and Shenzhen dropped 0.74%.

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(With Reuters)

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