Stock rises 1.5% with strong impetus from Petrobras and Vale

The Stock Exchange rose 1.50% this Tuesday (23), to 103,653 points, driven by the strong rise of Petrobras and important performance by Vale.

The dollar advanced 0.25%, to R$ 5.6080, still reflecting concerns about the country’s fiscal risk, but mainly following the global appreciation of the American currency with the expectation that the Fed (Federal Reserve, the central bank of the States United States) anticipate the increase in interest rates.

The expectation of an increase in basic interest rates in the United States gained strength after the reappointment of Jerome Powell for the second term at the head of the Fed, indicating that he will continue the withdrawal of stimuli created by the pandemic.

Petrobras preferred shares jumped 5.46% in a day of announcements that pleased investors and a significant rise in oil prices on the international market. The barrel of Brent advanced 3.54%, to US$ 82.52 (R$ 465.82).

The state-owned company announced that it evaluates two processes for the sale of refineries with advanced. In addition, it also announced on Tuesday that it set a record for liquefied natural gas cargo imports this year, with a total of 104 operations until November 4, amid imports at historic levels to meet the strong demand for thermal power plants in the face of a serious crisis in hydroelectric reservoirs.

Braskem shares had the biggest appreciation of the day (6.68%) after Petrobras denied its intention to sell now its minority stake in the company. The upward movement in the shares is attributed to the repurchase made by investors who had sold their shares and who are now beginning to see greater gains when the state-owned company completes the end of its participation in the company.

Vale’s common shares rose 2.63%, with investors buoyed by the fourth straight rise in iron ore futures contract prices. The commodity also advanced nearly 1% on the spot market in China.

In the domestic policy scenario, the rapporteur of the PEC dos Precatórios and government leader in the Senate, Fernando Bezerra (MDB-PE), announced that he will promote changes in the text, including the definition of Auxílio Brasil as a permanent social program.

Bezerra said that the matter could obtain between 51 and 53 votes in the plenary vote, just above the 49 needed to approve a change in the Constitution.

The market assesses the PEC dos Precatórios, which breaks the spending ceiling and defaults on judicial debts of the Union, as a viable solution for the government to pay Brazil Aid, close the 2022 budget, and thus offer greater predictability on the situation the country’s tax bill next year.

The day was also one of gains in the meatpacking sector, after China announced that it will accept Brazilian beef import orders that have received a health certificate before September 4, potentially allowing shipments held at Chinese ports to finally be released to enter the parents.

Still on the sector, Russia announced that it will resume importing beef and pork from 12 Brazilian units. Most of the restrictions on Brazilian producers have been in place since 2017, due to allegations of the use of the additive ractopamine in the feed of livestock, which Brazilian groups in the meat industry have denied.

Minerva shares rose 3.68%. Those of Marfrig, 2.67%. BRF and JBS advanced 0.89% and 0.57%, respectively.

On Wall Street, the Nasdaq index fell 0.50%, reinforcing the downward bias of the technology sector due to expectations of higher interest rates.

The Dow Jones and S&P 500 rose 0.55% and 0.17%, respectively.

with Reuters