Last week was marked by intense volatility in the markets, especially after the release of economic data in the United States and speeches by Federal Reserve President Jerome Powell.
Powell’s speech calmed investors by ruling out an interest rate hike this year, easing concerns that had previously arisen. The change in tone caused markets to revise their expectations for interest rate cuts.
According to monitoring by the CME Group, investors began to price an interest rate cut by the Fed from September onwards. They also increased the perception that a 50 basis point cumulative reduction in interest rates is likely — rather than 25 basis points.
In Brazil, the positive review of the Brazilian credit rating outlook by Moody’s last week and external influence led the Brazilian market to its best week of the year, rising 1.57%.
Now, the market expects, this week, the decision on interest rates here — expectation of a cut of 0.25 percentage points —, on Wednesday (8), and the interest rate decision in England, on Thursday (9) . In addition to speeches by Fed officials, which can give clues about the path the central bank will follow.
In the “Perspectives of the Week” series, Wise Investimentos partner André Ribeiro delves into the trends and events that will shape the financial market. Every Monday, on the YouTube channel of Market Monitor.
In this Monday’s episode (6), he highlights:
- The possible change in interest rate cuts in the United States, bringing relief to investors;
- The positive review of the credit rating in Brazil, which impacted market prospects;
- Releases of quarterly results from companies listed on B3.
