Why does Ipovespa crash on Big Wednesday? – Money Times

the ibovespa There was a day of strong pullback on this Wednesday (1) day of the decision cobumwhich meets to define the course of interest, and Fonc, in we. in Wall StreetR:

Stock indices wall St It opened lower on Wednesday, with investors cautiously awaiting the Cabinet’s decision Federal Reserve rate later, while chip maker Advanced Micro Devices rose after issuing a bullish outlook.

For Victor Benendorf, of the analysis house that bears his name, the ibovespa It makes a profit-taking move after January ends with an increase of 3%.

“The offshore market has been doing quite well on those two fronts, and has really priced in part of the expected recovery,” he says.

So says Leonardo Santana, analyst at Top Gain Research goods Drag index with yes (VOUCH3) Falling after reporting poor resultsIn addition to the price petroleum which leads to Petrobras (PETR4) operates in red.

the Iron orea thermometer for Brazilian mining companies, was A slight decrease of 0.29% on the Dalian Commodity Exchange in Chinaat 870.50 yuan per metric ton.

Other mining stocks also underperformed. the Gerdau (GGBR4) lost 2.6% and Metallurgica Gerdau (GOAU4) by 3.7%.

Kuboom day

After the closing, the Monetary Policy Committee (cobumAnnouncing after the closure of the local market, the first decision of the year in Silic No surprises are expected. Market expectations are that central bank Keep the rate Expenses by 13.75%.

“Although the levels are cold inflationHowever, the risks of public spending remain on the radar while the government does not indicate any effective effort with commitment Adminhighlights Caio Cañez de Castro, partner at GT Capital.

Ricardo Jorge, fixed income specialist and partner at Quantzed, points out that inflation seems to have reached a tipping point, although there are many uncertainties, mainly Regarding the fuel exemption. “Overall, price behavior has been more informative than expected for some time,” he says.

Benndorf estimates that Copom won’t change interest rates, but watch out for the announcement, which should highlight downside risks with higher spending (with no corresponding point in revenue) and higher inflation in the short term.