Monday, April 22, 2024

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Ibovespa flirts with a positive signal with the Treasury settlement

The Ibovespa distanced itself from the lows of the day and this Wednesday flirted with positive territory, supported by the stabilization of the yields of US Treasury securities, while agents counterbalanced the data of the North American economy and the statements of the president of Federal Reserve.

At 3:00 pm the Ibovespa showed a negative change of 0.1%, at 127,426.59 points. At the previous low it had reached 126,181.37 points. At its maximum it reached 127,693.56 points. The financial volume amounts to 14.5 billion reais.

In New York, the yield on 10-year Treasury notes was 4.3592%, after rising to 4.429% at a session high, from 4.365% a day earlier. The S&P 500, one of the benchmarks of the North American stock market, rose 0.33%.

Federal Reserve Chair Jerome Powell reiterated Wednesday that the central bank of the world’s largest economy has time to deliberate on its first interest rate cut given the strength of the economy and recent levels of high inflation.

He reiterated that if the overall economy evolves as Fed officials expect, they agree a lower rate will be appropriate “this year.” But he stressed that this will only happen when they “have more confidence that inflation is moving sustainably” towards 2%.

At the same time, data showed that the US services sector slowed in March, and the measure of prices companies paid for inputs fell to a four-year low. The opening of private sector vacancies observed by ADP, in turn, showed a still strong job market last month.

Still on the North American agenda this week is the government’s report on the US labor market for March.

Among the stocks, one of the main supports came from Bradesco, with preferred shares rising by 2.33%, while the 1.68% drop in Vale shares, on a day of collapse of iron ore in China, exerted significant pressure on the negative result of Ibovespa.

Source: Terra

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