As this week kicks off, traders are gearing up for an active market, with global sentiment turning negative due to rising interest rates.
Specifically, the ten-year U.S. Treasury note yield now exceeds 4.5%. Investors will closely monitor these U.S. rates and China’s economic trends.
Today, the S&P cut China’s GDP growth forecast from 5.2% to 4.8%. This follows bad news in China’s property sector.
In Brazil, today’s focus is on the Focus report and foreign trade data, out before market opening.
September’s final week sees higher U.S. rates and a rise in commodity prices, mainly oil. Traders now foresee possible U.S. rate hikes, especially for long-term bonds.
If confirmed, risk assets could suffer, and the dollar may strengthen. Last week, the DXY index marked its tenth straight weekly increase.
Furthermore, gloomy news comes from China. Evergrande scrapped its $35 billion debt restructuring plan last Friday.
This move worsens China’s already strained property market. As a result, the prices of metal commodities are falling.
The S&P stated limited fiscal easing from the Chinese government is expected.
Today, European stocks are down, as are New York future indices, but less so. The dollar’s performance is mixed, making minor gains and losses against various currencies.
In Brazil, the Central Bank will present the Focus report and foreign trade data.
Additional attention falls on boosting government revenue for fiscal balance. Reports today suggest debt negotiations with the Union could raise up to R$ 12 billion by 2024.