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The European Central Bank (BCE) announces, at 10:15 Brasília time, its monetary policy decision. The interest rate is at 2.75% and the expectation is for a decrease to 2.5%. Right after, at 10:45, the president of the authority, Christine Lagarde, holds a press conference.
It is important to remember that when interest rates are higher in regions and countries considered safer, investors tend to migrate or keep their capital allocated in these markets. After all, their fixed income assets start to offer a higher return, since their profitability is linked to the interest rate. On top of that, these markets also offer more security than emerging markets, for example.
In the same way that, when interest rates fall in developed countries, investors may seek alternatives that offer higher returns, even if that includes a little more risk. Thus, markets like the Brazilian one may end up being a destination. Therefore, the decision can also impact the trading session here.
Another issue that the market is keeping an eye on is Donald Trump's measures. On Tuesday (4), Commerce Secretary Howard Lutnick said that the American president would "probably" announce tariff agreements with Canada and Mexico. This ended up materializing, at least partially, yesterday (5), with a one-month pause on imposing tariffs on the automotive sector. The measure brought relief not only to the dollar but also to the American stock markets, which closed higher.