2023-08-16 23:29:12
This is the first time that the Brazilian stock market has accumulated so many drops in a row; decrease in the index in the month reaches 5.21%
REUTERS/Amanda Perobelli Closing this Wednesday, 16, represents the lowest level for B3 since June 2023
O Ibovespa ended this Wednesday, the 16th, down 0.5% to 115,591.52 points. As a result, the index recorded the 12th consecutive low, with negative results in all August sessions. This is the first time that the Brazilian stock market has accumulated so many drops in a row. The last time that ten falls in a row had been registered was in 1984. In addition, this closing represents the lowest level for the B3 since June 2023, when it reached 115,488 points. In the month, the Ibovespa accumulated a drop of 5.21%. The index reacted to the publication of the minutes of the last meeting of the US central bank, the Federal Reserve (Fed). At the time, the monetary authority decided to raise the country’s interest rate to a range of 5.25-5.50%. With the increase, the percentage reached its highest level in 22 years. In 2001, it was the last time interest was at 5.5%. All major US stock indexes ended lower, with the Dow Jones down 0.52%; the Nasdaq 1.15% and the S&P 500, 0.76%. The Fed had already analyzed the possibility of new highs to ensure that inflation remains at low levels. The document published this Wednesday, 16, indicated the possibility of further increases in the threshold to increase the pace of monetary tightening.
In June, the agency interrupted the interest rate hike cycle and maintained the range between 5% and 5.25% per annum. US interest rates were coming off a long period of highs, having been raised ten times in a row. The monetary authority evaluated that recent indicators suggest that the economic activity of the USA has been growing at a moderate pace. Job gains have been robust in recent months and the jobless rate has remained low. However, inflation remains high.” In determining the extent of further policy tightening that may be appropriate to return inflation to 2% over time, the Committee will take into account the cumulative tightening of monetary policy, the delays with which monetary policy affects economic activity and inflation and economic and financial factors. In addition, the Committee will continue to reduce its holdings of Treasuries and agency debt and agency mortgage-backed securities, as outlined in its previously announced plans, the central bank said.
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