The results of Wednesday’s trading across the Americas
🗽 On Wall Street:
U.S. stock markets saw their gains diminish on Wednesday after Federal Reserve Chairman Jerome Powell assured that he will gradually reduce the pandemic-related stimulus, and that the central bank intends to raise rates in March. Following the speech, bond yields soared.
The S&P 500 (SPX) fell again Wednesday after rising more than 2% earlier in the day, while the U.S. dollar rose to a one-month high and 10-year Treasury yields approached 1.9%.
🔑 The Day’s Key Events:
Brent crude oil hit $90 for the first time since October 2014 on Wednesday, as demand continues to recover from the pandemic and amid market jitters over potential supply disruptions that could be generated by tensions in the Russia-Ukraine conflict.
Crude oil is having a volatile week, with a drop on Monday and then a rebound. A number of Wall Street banks, including Goldman Sachs Group Inc. (GS), have already predicted that oil will reach $100 per barrel this year as the global market tightens.
“Energy traders are anticipating higher energy prices on potential geopolitical risks and as OPEC+ will stick to their plan to deliver another modest increase to production at next week’s meeting,” Eduardo Moya, a senior market analyst for the Américas at OANDA, said.
🥇 The Leader:
Brazil’s Ibovespa (IBOV), Latin America’s leading stock exchange by market capitalization, was the day’s top performer in the region, as local and foreign investors awaited the announcement of the Federal Reserve’s interest rate decision.
The shares of Grupo de Moda Soma (SOMA3) and Pet Center Comercio (PETZ3) were among the best performers on Wednesday, as the main stock market index closed with an increase of 0.98%.
IPCA-15, the official inflation advance, increased by 0.58% in January, decelerating in relation to the 0.78% registered in the previous month with the impact of the decrease in gasoline prices.
📉 A Bad Day:
The Peruvian stock exchange (SPBLPGPT) was Latin America’s weakest performer on Wednesday, following the international market trend. The industrial and materials sectors registered losses during the session, with Mining Corp (TV) and Minas Buenaventura (BVN) among the worst performers.
🍝 For the Dinner Table Debate:
JPMorganChase & Co. (JPM) announced plans to hire 500 people in Latin America over the next three years as it gains market share and builds on its success in the financing acquisitions.
The bank currently has 3,850 employees in the region, distributed in countries such as Chile, Colombia, Peru, Argentina, Brazil and Mexico; and its new hiring plans mainly target its Buenos Aires hub, where the company aims to have around 450 new employees.
Last year JPMorgan collected more investment banking fees in Latin America than any of its competitors. “With the exception of fixed-income markets, we had the best year in 2021 for all the businesses we have in Latin America,” Alfonso “Poncho” Eyzaguirre, who has been the bank’s chief executive for Latin America and Canada since March, said in an interview. “And we want to keep growing,” he said.