July 18, 2024

Ibovespa futures run higher, another day of commodity advance

3 min read
Direct Treasury: The interest on public bonds is reversed up and down;  Real returns on inflation papers are up to 5.67%.
Direct Treasury: The interest on public bonds is reversed up and down;  Real returns on inflation papers are up to 5.67%.

Ibovespa futures opened higher in this trading session Wednesday (19), up 0.56%, at 108,090 points, around 9:20 AM (Brazil time). The Brazilian index continues to be driven by commodities, having closed higher on Tuesday, while the US and European bourses posted significant declines.

The price of a ton of iron ore traded at the port of Dalian, China, rose more than 4%, reaching $115.80. At Qingdao Port, in the same country, the advance was 2.80%, at $131.23.

In addition to crude, the price of a barrel of oil is also rising, as investors look to escalating tensions in the Middle East, after Yemeni rebels seized control of a drone attack in Abu Dhabi, United Arab Emirates.

In addition, there are reports that an important oil pipeline between Turkey and Iraq ran into problems this morning. A barrel of West Texas Intermediate crude rose 1.43% to $86.65. Brent is 1.09% at $88.46.

The future of Ibovespa is also moving forward, driven by the easing of the yield curve, which, after yesterday’s strong rally, today is mostly running lower. The yield on January 2023 DI contracts fell by four basis points to 12.05%. The January 2025 DI also fell four points to 11.45%. One January 2027 decreased four points, to 11.41%, and the same month from 2029 decreased three points, to 11.52%,

“In addition to external pressure, the still-high domestic fiscal risks have been added to public servant pressure for a salary adjustment,” XP Investimentos comments, in Morning call.

The trade dollar fell 0.44% to R$5.535 on purchases and R$5.536 on sales.

The rise in commodities is also putting pressure on interest rates abroad

Abroad, Treasury yields continue to advance. In Germany , Ponds State bonds will trade above zero Wednesday for the first time since 2019, after the country reported that December inflation rose 0.5% — the 10-year rate rose 0.018% in the early morning. In the United States, in the futures market, the return is treasury bonds Ten-year maturities rose 1.6 basis points to 1.884%.

Despite this, major indices are breathing outside today, partially recovering from the previous day’s lows. In the US, Dow Jones, S&P 500 and Nasdaq futures rose 0.20%, 0.25% and 0.39%, respectively. In Europe, the German DAX rose 0.41%. The UK FTSE Index is up 0.35%. The Eurozone STOXX 600 Index rose 0.41%.

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“High interest rates have accelerated the pace of forex trading growthFrom mega-tech to ancient. This has made more traditional emerging markets, such as Brazil, Mexico and Chile, perform better than US stock exchanges.

Still abroad, today the People’s Bank of China sets the preferential lending rate at 10:30 PM. XP Investimentos comments, “Following the opposite path of central banks in developed countries, the People’s Bank of China indicates that it will use more monetary policy tools to stimulate the economy and promote credit expansion.”

Asian stock markets closed lower, reflecting the global performance of the previous day. Japan’s Nikkei is down 2.80% – highlighting the negative performance of Sony, after Microsoft announced the purchase of Blizzard. China’s Shanghai Index fell 0.33%. Cosby in South Korea by 0.77%.

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