Ibovespa futures started Friday down after the holiday of Black Awareness Day under the pressure of global risk aversion and reactions of investors on the attitude of the United States towards the removal of a 40% import rate on some products from Brazil.
By 9:04 AM (Brasilia time), the December contract fell 0.93%, to 155,410 points.
US President Donald Trump’s new executive order, signed yesterday, suspended tariffs on agricultural products targeted by the July measure, the White House said.
Brazilian President Luiz Inácio Lula da Silva described the move as “a step in the right direction,” but stressed that more needed to be done.
Starting November 13, the decree will apply to US imports of Brazilian goods and may require tariff repayment.
As the day progressed, the index fell further to 154,893.
Mixed signals in US Labour data add to market uncertainty
According to local media outlet InfoMoney, markets remained cautious around the potential for an AI-based market bubble despite strong forecasts from Nvidia.
The turmoil was compounded by US labour data, released earlier on Friday, that revealed a big pickup in job creation as well as the highest unemployment rate in four years, which led to diminished hope for any further reduction in Federal Reserve interest rates this year and left some economists divided on whether a recession is near.
These were the top results on PD marketing items, AFP, in recent weeks: Paco CFO: Dow Jones futures were up 0.22% while S&P was up 0.18% and Nasdaq was down 0.48%
The spot dollar climbed 0.41% over the real to BRL 5.360, while the dollar contract with the closest maturity on B3 advanced 0.49% to BRL 5.365.
Asian markets fall as rate-cut hopes fade and Japan signals intervention
Asia-Pacific markets fell, mirroring losses in US technology companies and diminishing expectations of a December Federal Reserve rate cut.
Investors also reacted to warnings from Japan’s Finance Minister Satsuki Katayama that currency intervention could be near, following the Takaichi government’s $135 billion stimulus announcement.
The events brought more pressure on Japanese government bonds and the currency.
Data released Friday indicated that underlying inflation in Japan reached 3.0% year on year in October, maintaining beyond the Bank of Japan’s 2% target and putting additional pressure on policymakers.
Commodities fall due to geopolitical and demand concerns
Oil prices fell for the third day in a row as the US pressed for a peace settlement between Russia and Ukraine, which may boost world supplies.
Iron ore prices in China fell for the second day in a row, driven down by signals of lower demand and declining profit margins in the country’s steel industry.
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