Ibovespa futures began a further decline this Tuesday (26th) after the premarket indices in the United States followed suit. The difference is that Wall Street is in for a bullish session after yesterday’s business turnaround following confirmation of multibillionaire Elon Musk’s purchase of Twitter. Here in Brazil, the stock market gained some momentum but failed to follow the trend reversal and ended lower for the sixth straight day.
The situation in China continues to spur caution as the country’s growing number of Covid19 cases poses the threat of new lockdowns. Tests are being rolled out en masse in the Chinese capital Beijing as authorities roll out new stimulus measures to offset the restrictions. Commodities are recovering, but not all: while the barrel of Brent oil returns to $103, up more than 1%, the price of iron ore falls again, falling 2.53% on the Dalian Stock Exchange.
Watch out for inflation here in Brazil. The central bank published its Focus Report with the economists’ forecasts again today. A month ago, due to the BC servers strike, the market was working without this reference. Four bulletins were released today, and in the most recent, economists’ outlook for the Broad Consumer Price Index (IPCA) in 2022 is 7.65%, Selic at 13.25%.
As of 9:20 am (Brasília time), the Ibovespa June future was down 0.5% to 111,720 points.
The dollar hit a high for the third straight day and is nearing the R$5 level. At the same time, the trade dollar was trading at R$4,918 in buying and selling, peaking at 0.88%.
Read more: Dollar from BRL 4.60 to BRL 4.90: This explains the strong appreciation of the American currency in the last few sessions
Future rates point to another downtrend, particularly for longer maturities: DIF23, +0.01pp, at 12.96%; DIF25, 0.03pp, at 11.96%; DIF27, 0.03pp, at 11.79%; DIF29, 0.06pp, at 11.91%; and DIF31, 0.05pp, at 12.03%.
New York index futures gave back some of the previous day’s gains: Dow Jones futures slipped 0.39%, while S&P 500 and Nasdaq futures declined 0.34% and 0.36%, respectively.
European stock markets are rehearsing a rebound even as the war in Ukraine continues with no sign of a ceasefire. Vladimir Putin’s offensive against the neighboring country continues. According to Agence France Press, the head of Russia’s diplomacy, Sergei Lavrov, said the threat of world war was serious and should not be underestimated.
European stocks ended sharply lower yesterday as concerns over a resurgence of Covid cases in China overshadowed Emmanuel Macron’s reelection in France.
Technical analysis by Pamela Semezatto, investment analyst and day trader specialist at Clear Corretora
Ibovespa
“It hit the support region yesterday leaving a candlestick pattern known as the ‘Hammer’. When this pattern triggers, it suggests an upside move and considering the downside move is already stretched and sitting on a support, some upside moves would be interesting. But the shortterm trend is still elusive until it shows ups and downs, either up or down.”
dollar
“It is continuing in the fall recovery move for now without showing any major shifts in buying candles. The next resistance is R$5,060.”
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