Ibovespa Futuro continues to show significant increase after US payroll and reversal of progress in commodities

The Ibovespa Futuro index is running higher in the first trading on Friday (4), in line with pre-market in the US and European exchanges, after the spot index closed slightly lower the day before, which led to higher interest rates. and more extremist – difficult – from the chairman of the Federal Reserve.

The most notable event was also the payroll report, or the so-called US employment report. At 9:16 am (Brazilian time), the December contract rose 1.60%, to 120.340 points, and minutes after the data was released, at 9:34 am, the index slightly pared the gains, but it is still strong. 1.38% increase to 120,080 points. United State Created 261 thousand job opportunities outside the agricultural sector in October, Above expectations, the unemployment rate rose to 3.7%.

On Wall Street, futures indexes are running higher, reducing the accumulated losses in four negative sessions this week.

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This morning, Dow Jones Futures is up 0.43%, S&P Futures is up 0.60%, and Nasdaq Futures is up 0.56%, slowing slightly from previous highs.

In turn, the US currency fell again against the riyal, with a strong influx of foreign capital into the country. The trading dollar was down 0.80% at 5.084 R$ when buying and 5.085 R$ when sold. Dollar futures for December were down 0.44% to R$5.121.

With respect to the yield curve, futures contracts operate without a definite trend. DIF23 (January to 2023) stable at 13.67%; DIF25, has a -0.01 ppm drop, at 11.78%; DIF27, -0.02 pages, 11.50%; And DIF29 is running stably at 11.62%.

In the domestic scenario, the government transition process began yesterday (3). After a meeting of elected government representatives and a decision on the 2023 budget, there was an indication that it would be necessary to approve the PEC while releasing new spending beyond the cap for next year, especially to keep Brazil’s aid paid to make way for other promises made during the campaign.

In the corporate space, investors are resonating with a flurry of balance sheets published last night, focusing on Expected results above from Petrobras (PETR4), but with uncertainty about the direction of the company after the election, more caution was generated in the market about the company.

Also note that Brent oil is up about 3% and iron ore traded in Dalian is up about 5%. The move follows news that China is working on a plan to end the flight ban regime with passengers infected with the Covid-19 virus, Bloomberg News reported Friday, citing people familiar with the outbreak. But Chinese Foreign Ministry spokesman Zhao Lijian said on Friday he was not aware of the report.

abroad

European markets are in recovery as markets wrap up a week of big monetary policy decisions and corporate earnings.

The day before, the Bank of England made a 75 basis point increase in interest rates, while the Federal Reserve also continued its monetary tightening to contain rising inflation.

In the indices, investors also reflect data from the Eurozone Producer Price Index. There, the economic data was not very positive. German industrial orders fell 4% in September on a monthly basis, while the region’s composite PMI fell in October to a 23-month low.

Asia

Most Asian markets closed higher, most notably Hong Kong’s Hang Seng Index, which rose more than 5% led by tech and consumer stocks, amid rumors of China reopening and news that US inspections of Chinese companies have completed faster than expected.

On the currency exchange front, the offshore Chinese yuan and the Australian dollar strengthened against the dollar, after speculation about the reopening of the Chinese economy.

On the commodities side, crude futures prices rose for the fourth time in a row this week, with gains of nearly 5% in this session alone, with fresh rumors of reopening from China as zero Covid policies continue, weighing on the economy.

Oil prices reverse the downtrend recorded at the opening and are running higher on Friday, erasing losses from the previous session amid concerns that US interest rates will rise more than expected ahead of Powell’s Fed speeches.

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