São Paulo – Less than an hour before the close of trading, Ibovespa lost gains and closed near stability, with a downtrend. Thus ended the session that promised to be encouraging for the Brazilian stock market. Uncertainty about the GEC’s progress on court orders soured the mood of investors who had hitherto taken advantage of a more fundamental day on the stock exchange, echoing the company’s balance sheets.
The market also turned around, just over two hours before the Central Bank’s Monetary Policy Committee (Copom) announcement on the new rate, which looks higher than expected, as if it had already been priced in the negotiations.
“A sharp rise in interest rates was supposed to put risky investments like variable income at risk, but given the already bad scenario pricing, today was a positive,” notes Bruno Komura, of the analysis team Oro Preto.
However, the turnaround in business confirmed that concerns about the country’s financial condition, inflation and rising interest rates remain on investors’ radar.
According to a newspaper poll Economic valueIn the House of Representatives, the MDB decided it would block the vote on the PEC of the precatório. The proposed amendment to the constitution stipulates that the government will pay only a portion of the judicial debts for the next year, making room in the budget for other expenditures, such as Auxílio Brasil, replacing the Bolsa Família.
“Without PEC, we’re back to the previously problematic quota within an already tight budget. The club needs to pass, but it was clear that the opposition would try to stop and block progress. I find it hard not to agree, but it will stretch and ‘bleed’ as much as possible. So much so that we have this pressure in the market,” says Rodrigo Franchini, director of Monte Bravo.
Senate President Rodrigo Pacheco (PSD-MG) said he would be able to invoke a regulation so that the matter would go directly to the Senate plenary. “Given the speed with which this solution must be given to Preliminary Laboratories and Auxilio Brasil, to invoke a standard that exists today the possibility of going directly to the plenary of the Senate. The important thing is not to prejudice the analysis and the maturity of the proposal,” he said at a press conference.
The Ibovespa index closed down 0.05% to 106,363 points. The trading volume reached 27 billion Brazilian riyals. Ibovespa futures fell 0.20% to 107,295.
The trading dollar closed 0.28% lower at R$5.553 on purchase and R$5.554 on sale. Dollar futures due in November 2021 fell 0.37% to R$5,550.
The interest lies in the future. The DI for January 2023 fell 34 basis points to 11.38%. DI slipped in January 2025 by 29 basis points, down 11.69%; The DI for January 2027 was a negative divergence of 20 basis points at 11.79%.
All attention now turns to Coboom’s decision. Expectations are growing that the adjustment in Selic’s rate, currently at 6.25%, will be 1.5 percentage points, and some homes are expecting an even larger increase. In any case, higher interest rates affect most listed companies, as they increase capital costs, especially for companies that are in the process of expanding.
In the US, indices that were renewing their historical highs almost daily have returned part of the gains today. The Dow Jones closed lower for the first time in four days, down 0.74%. The S&P 500 closed 0.51% lower. The Nasdaq Technology Exchange rose 0.12%, boosted by shares of companies such as Microsoft and Alphabet (owner of Google), which showed better-than-expected results.
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