Ibovespa Futuro opens stable awaiting speeches from Powell and Campos Neto

Ibovespa Futuro operates close to stability this Wednesday (3), with attention focused on speeches by the president of the Federal Reserve (Fed), Jerome Powell, and the president of the Central Bank of Brazil, Roberto Campos Neto, amid adjustments of expectations regarding the pace of interest rate cuts in the USA.

The president of the BC, Campos Neto, will give a lecture at an event promoted by Bradesco BBI, in São Paulo, starting at 10 am.

In indicators, market agents digest industrial production for February, with LSEG consensus projecting an increase of 0.3% on a monthly basis and 5.6% on an annual basis, in addition to the services PMI.

At 9:23 am (Brasília time), the future index due in April operated with a slight devaluation of 0.03%, at 127,720 points.

Still in the national field, the decision by the president of the Senate, Rodrigo Pacheco (PSD-MG), to maintain the exemption from the municipalities’ payroll, taken on Monday (1st), caused uproar in the government, which claimed not to have been informed of the Pacheco’s decision.

Ibovespa Futuro reacts to the outside world

On Wall Street, US futures indexes operate lower, continuing the negative start of the quarter, while investors wait for new employment data (ADP survey) from the largest economy in the world and speeches from the president of the Federal Reserve (Fed).

In addition to Powell, other members of the US central bank, including Fed governors Michelle Bowman and Adriana Kugler, are scheduled to speak. Chicago Fed President Austan Goolsbee and Fed Vice Chairman for Supervision Michael Barr will also speak at events.

On the American agenda, we will have PMI data for March measured by the ISM services index and the S&P Global US PMI, in addition to ADP job creation for the same month.

This morning, the Dow Jones Future fell 0.02%, S&P Future fell 0.05% and Nasdaq Future fell 0.11%.

Dollar and foreign market

The commercial dollar operates with an increase of 0.23%, quoted at R$5.070 for purchase and sale. The dollar futures (DOLFUT) rose 0.05%, reaching 5,085 points.

In the interest rate market, futures contracts fell en masse this Wednesday. DIF25 operates down 0.01pp, at 9.93%; DIF26, -0.04 pp, at 9.94%; at DIF27, -0.03 pp, at 10.24%; DIF28, -0.03 pp, at 10.56%; DIF29 -0.01 pp, at 10.80%.

Oil prices are trading higher as a larger-than-expected draw in U.S. crude inventories and escalating geopolitical tensions have raised investor concerns about tighter supplies.

Iron ore prices in China closed lower but are still trading at a weekly high as traders balance weak demand and hopes of better future consumption. China’s real estate crisis has reduced demand for steel products, which are heavily used in construction. Benchmark iron ore for May (SZZFK4) on the Singapore Exchange fell 1.9% to US$99.65 per ton.

Asian markets closed lower this Wednesday, following the behavior of Wall Street, which yesterday had its worst daily performance in weeks amid concerns about the trajectory of basic interest rates in the US. With the lack of appetite for risk, the S&P Global/Caixin survey that showed the Chinese services PMI rising to 52.7 in March, as predicted, took a backseat.

It is worth remembering that Chinese markets will be closed on Thursday and Friday due to a holiday.

European markets are mostly operating higher, with investors reflecting inflation data from the region. Inflation in the 20-nation eurozone eased to 2.4% in March, according to preliminary figures published on Wednesday. Economists consulted by Reuters expected the rate to remain stable compared to the previous month, at 2.6%.