Turim’s Insights

In April, the Brazilian and international markets rose, influenced by three major factors: prospects for low interest rates in the United States, less pressure from the US Dollar and rise in commodities’ prices. That’s what our partner and CIO Leonardo Martins Moraes explained in our monthly webinar, held this Wednesday.

During this event, Martins said that, although there is still several news and data that justify a heated economy, in April, there was a reversal of the upward movement in 10-year interest rates in the US.

“This means that there is a smaller difference between the United States and other developed countries interest rates – which creates less pressure on the USD. This stoppage in the rise in interest rates, combined with lesser pressure from the Dollar, creates a new movement of risk appetite in the markets, with stock exchanges, especially the American ones, setting new records”, he explained.

Martins also highlighted the strong upward cycle of commodities, which led the stock exchanges to price economic growth even more – despite also raising concerns about inflationary pressures at some point.