Ibovespa closes down 1% after strong employment data in the US; Dollar rises

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The Ibovespa ended this Friday’s trading session (2) in decline, influenced by robust data from the labor market in the United States, which weakened expectations of a cut in North American interest rates in the first quarter.

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The Ibovespa fell 1.01%, to 127,182 points, accumulating a decline of 1.21% for the week. At the day’s high, it reached 128,878.43 points. At the minimum, at 126,627.88 points.

According to data from the US Department of Labor, 353,000 jobs were created in the country in January, well above expectations of 180,000. The unemployment rate was 3.7% compared to a forecast of 3.8%.

Global X ETFs research director Morgane Delledonne said the data reinforces the Federal Reserve’s view of postponing discussions on first rate cuts.

Last Wednesday, Federal Reserve Chair Jerome Powell had already cooled bets on an earlier cut, stating that he did not think a reduction in March was likely, even though he observed an improvement in inflation.

Itaú BBA’s technical analysis assesses that the Ibovespa needs to surpass 129,400/558 points to trigger a more consistent recovery that could take the index to levels of 132,000 and the December maximum, at 134,400 points.

“On the downward side, the region of 126,400 points remains a warning sign for investors,” he stated in a note to clients.

In the United States, the Dow Jones index registered an increase of 0.35%, reaching 38,654 points, while the S&P 500 presented a gain of 1.05%, reaching 4,957 points. The Nasdaq Composite technology index advanced 1.74%, reaching 15,628 points.

Dollar

The spot dollar closed Friday with an increase against the real, of just over 1%, due to investors’ reaction to positive data from the United States labor market. For analysts, the creation of more than 353,000 jobs in that country in January gave strength to the idea that the Federal Reserve will not start cutting interest rates in March.

The spot dollar closed the day at 4.9661 reais on sale, up 1.04%.

IBOVESPA HIGHLIGHTS
(spot auction)

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