TERMS THAT MOVE YOUR MONEY16
MARKET GLOSSARY
Short explanations, written by our newsroom, of terms that show up in our stories every day.
Brazil's fiscal frameworkThe rule that limits the growth of federal government spending and defines primary result targets (revenues minus expenses, not counting interest).…Circuit breakerAutomatic business interruption when the index drops too much in a short period of time. At B3, trading stops when the Ibovespa drops 10%, 15% and 20%…Copom (Brazil's rate committee)The Monetary Policy Committee of the Central Bank of Brazil. It meets the president and directors of the BC eight times a year to decide the Selic rat…CPI (consumer prices)The United States consumer price index, the country's official inflation, released around the middle of the month.…DXY (dollar index)The index that measures the strength of the dollar against six strong currencies (euro, yen, pound, Canadian dollar, Swedish krona and Swiss franc).…Fed and FOMCThe Federal Reserve (Fed) is the central bank of the United States. Interest rates are decided by the FOMC, the open market committee, in eight meetin…IbovespaThe main index of the Brazilian stock exchange, B3. It brings together the most traded shares, with a large weight of banks, Petrobras, Vale and other…IPCA (Brazil's inflation)The Broad National Consumer Price Index, measured by IBGE, is Brazil's official inflation and the reference for the target pursued by the Central Bank…Nasdaq 100The index of the 100 largest non-financial companies listed on the Nasdaq exchange, with a heavy weight in technology: Apple, Microsoft, Nvidia, Amazo…NQ and MNQNasdaq 100 futures contracts on the CME. At NQ, each point is worth US$20; on the MNQ micro, US$2.…Payroll (nonfarm payrolls)The United States employment report, normally released on the first Friday of the month, at 9:30 am Brasília. It shows how many jobs were created outs…PCE inflationThe personal consumption expenditures price index, the Fed's preferred measure of inflation. Core PCE, which takes out food and energy, is the number …Primary surplusThe surplus in government accounts before paying interest on the debt. When expenses exceed revenues, the result is a primary deficit.…Selic rateBrazil's basic interest rate, defined by Copom. It serves as a reference for loans, financing and fixed income, such as the Treasury Selic and the CDI…TreasuriesAmerican government debt securities. The 10-year Treasury yield is the world's long interest benchmark.…VIXThe American stock market volatility index, known as the fear index. It measures how much the market expects the S&P 500 to fluctuate over the next 30…