In line with American stock exchanges, Brazilian ADRs fluctuate waiting for the Fomc

Waiting for the result of the Federal Reserve’s (Fomc) monetary policy committee meeting this Wednesday (1) at 3pm, the Dow Jones Brazil Titans 20 ADR (BR20) index opened slightly higher, but went on to fall 0. 1% around 12pm this Wednesday in the United States, at 18,914 points. The EWZ ETF opened slightly higher, but continues the downward trend, with a slight decrease of 0.02%, at the same time, quoted at US$31.

The level of the indices that replicate Brazilian assets are in line with the American stock exchanges, which also operated mixed at 12 pm: the Dow Jones rose slightly 0.3% (37,920 points); the S&P 500 fell 0.14% (to 5,028 points); and the Nasdaq also operated with a slight drop of 0.08% (15,644 points).

It’s a day off at B3, due to the Labor Day holiday, but in the US, share receipts from Brazilian companies are traded normally – and investors should keep an eye on variations in the day’s agenda.

Regarding the Fomc’s decision, the market’s expectation is that the interest rate will be maintained, but the mood may vary depending on the communication from the president of the Fed, Jerome Powell, which could impact the expectation of the beginning of the cutting cycle, in the assessment of the XP Investimentos. The meeting ends at 3pm, with Powell’s press conference afterwards.

BR20 brings together ADRs (American Depositary Receipts) of the main companies in Brazil, and EWZ is the main ETF (Exchange Trade Fund) Brazilian traded on the American market. It replicates the MSCI Brazil index.

Biggest ups and downs

Among the biggest falls in the BR20, at 12 pm, were BRF with a drop of 0.76%, quoted at US$ 3.27 and also Banco Santander which opened falling almost 2% and mitigated losses to 0.3% at the same time mentioned.

Petrobras opened trading with a slight drop of 0.06% and deepened its losses to 0.74% at 12 pm.

At the other end, Cemig is one of the highlights of the positive field, with an increase of 0.38%, quoted at US$ 2.42

Vale opened the trading session in positive territory, but turned to negative territory around 12 pm, with a drop of 0.5%. The iron ore on the Dalian Commodity Exchange closed close to stability, rising 0.06%, at 874 yuan (US$120.7) a ton.

See the updated table at 12pm:

More jobs in the private sector

This Wednesday morning the private employment indicator ADP was also released: the United States created 192 thousand new jobs in the private sector in April. In addition to surpassing the 186 thousand jobs opened in March, the figure exceeded analysts’ projections, which predicted 179 thousand new vacancies. The data is from the ADP National Employment Report, produced by the ADP Research Institute, in collaboration with the Stanford Digital Economy Lab.

At 10:45 am the industrial purchasing managers index (PMI) was also released, which fell from 51.9 in March to 50.0 in April, returning to a neutral level, in which activity is not even contracting. , nor expanding. The reading signaled the end of a three-month streak of improving industrial operating conditions, S&P Global reported.

Also, at 11 am the Jolts report was released, which shows the opening of jobs in non-agricultural sectors in the United States. There was a drop from 8.8 million in February to 8.5 million in March. The result was slightly below analysts’ consensus, which estimated the creation of 8.680 million jobs in the month.

Stronger than expected data should be interpreted as signs of a stronger economy, which should continue to put pressure on the Fed to maintain interest rates.

Petroleum

Oil prices are falling for the third day in a row, due to the increase in stocks and production in the USA, the largest global consumer of the commodity, in addition to growing expectations of a ceasefire agreement in the Middle East.

At 12pm this Wednesday (1), the price of a Brent barrel was traded at US$ 85 per barrel and WTI at US$ 80.