Market Information Wednesday 5 June 2024

U.S. job openings declined significantly in April, reaching the lowest point since February 2021, indicating a softening labor market which could assist the Federal Reserve in controlling inflation. The drop in job openings and the decrease in the ratio of job openings to job-seekers suggest a normalization of labor demand and supply, with Fed officials viewing the cooling as beneficial for price stability while keeping future rate cuts dependent on labor market and inflation trends.

Brazil’s economy is expected to have experienced an acceleration in the first quarter of the year, driven by increased federal spending, strong household expenditure, and private investment. This growth marks an improvement compared to the stagnation in late 2023, with projections suggesting a 0.8% quarter-over-quarter growth and a 2.2% year-over-year increase.

The U.S. dollar experienced a rebound after hitting multi-month lows against the euro, sterling, and Swiss franc, supported by a consolidation of gains in other currencies and market reactions to U.S. economic reports including job openings and manufacturing activity. Meanwhile, the yen surged to a three-week high against the dollar, influenced by the Bank of Japan’s vigilance over currency fluctuations and possible discussions on reducing bond purchases.

The 6M Euribor increased with 1 basis point to 3.76% compared to previous business day. The 10Y Swap decreased with 5 basis points to 2.77% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.