August 9, 2022

The Catholic Transcript

Complete News World

Ibovespa cuts gains on Wall Street after Powell's speech to Reuters

Ibovespa cuts gains on Wall Street after Powell’s speech to Reuters

2/2
© Reuters. Ibovespa trims its gains with Wall Street after Powell’s speech 10/26/2020 Reuters / Mike Segar

2/2

São Paulo (Reuters) – Brazil’s main stock index fell early Monday afternoon, in line with New York stock exchanges, after Federal Reserve Chairman Jerome Powell indicated there was a chance of a sharper rate hike. However, commodity stocks ensured the index’s rise.

The official said the Federal Reserve, the US central bank, must move “quickly” to control inflation, adding that if necessary, the institution could raise interest rates by more than 0.25 percentage points to reduce price advances.

At 14:18, it rose 0.21% to 115,553.27 points after three consecutive gains. The index was about 116,000 points before the release of Powell’s statements. The financial volume of the session amounted to 14.4 billion riyals.

“If we conclude that it is appropriate to act more aggressively, raise interest rates by more than 25 basis points in a meeting or meetings, we will do so,” Powell said in remarks prepared for a conference.

The Fed began its rate hike cycle last week with a 0.25 percentage point hike.

Traders are now pricing in a 60.7% chance of a 0.5 percentage point rate hike at the Fed’s next policy meeting in May, up from 52% before Powell’s comments. More significant increases in interest rates are considered negative for stock exchanges due to the withdrawal of liquidity from the markets.

Wall Street’s major indexes, which were trading without one direction prior to the comments, fell between 0.5% and 1.1%.

However, gains from Vale (SA :), Petrobras (SA 🙂 and large retail banks supported Ibovespa. At the opposite end, B3 (SA 🙂 and WEG (SA 🙂 were negative highlights.

See also  Open Finance will save Brazilians money and time, according to an Itaú . executive

The external scenario was already cautious in the morning in global stock markets, amid rising prices and a lack of progress in peace talks between Ukraine and Russia.

(by Andre Romani)

Risk statement: Fusion Media I would like to remind you that the data on this website is not necessarily current or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges but by market makers, and therefore prices may not be accurate and may differ from the current market price, which means that prices are indicative and not appropriate for trading purposes. Therefore Fusion Media assumes no responsibility for any business losses you may incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media shall have no liability for loss or damage as a result of reliance on the information including statements, quotes, charts and buy/sell signals included on this website. Please be fully aware of the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment.