2023-12-14 14:48:22
SÃO PAULO, SP (FOLHAPRESS)
The Brazilian Stock Exchange surpassed the 130,000 point mark and was operating sharply higher this Thursday morning (14), driven by expectations that American interest rates should start to fall next year. On Wednesday (13), the Fed (American central bank) signaled that US rates may have reached their peak, encouraging the market.
If the upward trend continues until the end of the day, the Ibovespa is on track to surpass its historic high of 131,190.30 points.
The dollar continues to fall, pressured precisely by the prospect of lower interest rates, which tends to make investors reallocate resources to riskier markets by reducing the return on American fixed income.
At 11:14 am, the Ibovespa registered an increase of 1.07%, at 130,959 points, and surpassed 131 thousand points at the day’s high, while the dollar fell 0.38%, quoted at R$4,900.
“The question at this moment is whether the market can continue to rise,” said Guide Investimentos analyst Mateus Haag, adding that the house’s view is that the Ibovespa is still cheap.
Furthermore, he stated, the flow into shares has been low in recent years, with investors having little allocation in general, which leaves room for more appreciation.
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In addition to confirming market expectations by keeping interest rates unchanged in the range between 5.25% and 5.50%, the Fed also announced that its directors project a 0.75 percentage point cut in rates in 2024, giving optimism to investors . No bank authority predicts interest rate hikes next year.
In its statement, the Fed said that recent indicators suggest that the growth of US economic activity has slowed from its strong pace in the third quarter, citing that the rise in interest rates has managed to moderate the warming of the labor market and that inflation has fallen over the period. year, despite remaining high.
The bank also highlighted the conditions that would make it consider “some additional policy reinforcement” that may be appropriate to bring inflation to the 2% target. The word “some” was added to the authority’s statement, in a signal seen as softer by the market, suggesting that the central bank may not see the need to raise rates.
At a press conference, Fed Chairman Jerome Powell said the inclusion of the word “some” reflected the view that interest rates were “probably at their peak.” He also added that while authorities “do not consider it appropriate to raise interest rates further, they also do not want to take the possibility off the table.”
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