Today’s financial update highlights Wednesday (20) as crucial, with the stock market anticipating key decisions from the Federal Reserve (Fed) and Brazil’s Monetary Policy Committee (Copom).
These announcements could significantly sway the stock market’s direction. The spotlight is on the outcomes from both the Fed and Copom.
The financial world is keenly observing Fed Chairman Jerome Powell’s press conference and Copom’s announcement regarding the Selic rate.
A report by local market intelligence indicates a strong market expectation for a reduction in the Selic rate and a shift in the tone of communication.
This anticipation is based on insights from nine leading financial entities, including ASA Investments, Austin Rating, and major banks like BNP Paribas and Bank of America, concerning the Copom meeting.
The stock market experienced a slight uplift of 0.45%, hitting 127,528.85 points. Meanwhile, the dollar saw a marginal increase of 0.08%, reaching R$ 5.0297.
This week also brought to light key developments, such as minority shareholders seeking a seat on Petrobras’ (PETR4) board.
Wednesday Morning Call: Market Awaits Decisions on Key Interest Rates
Additionally, the Boletim Focus report updated its 2024 GDP growth forecast to 1.80%.
In the U.S., the stock markets ended Tuesday (19) on a positive note, with the S&P 500 setting a new record high, thanks to gains in the technology (+0.64%) and financial (+0.48%) sectors.
The energy sector (+1.08%) also saw notable gains, fueled by rising oil prices. The Dow Jones and Nasdaq advanced, closing at 39,110.76 and 16,166.79 points, respectively.
This confluence of events underscores the interconnected nature of global financial markets and the significant impact of monetary policy decisions on market dynamics.