The Brazilian Stock Exchange closed on a high this Wednesday (24), supported by gains by Vale, Petrobras and large banks, companies with great importance in the core of the country’s stock market due to the volume of negotiations and attractiveness to foreign investors .
The Ibovespa, the Stock Exchange’s benchmark, rose 0.83% to 104,514 points. It’s the second straight day of earnings. The day before, there was an increase of 1.50%.
The dollar closed down 0.23% to R$5.5950.
After being pressured by expectations of rising inflation in the first hours of trading, Ibovespa and exchange began to reflect the relief of investors with the hope that the government and Congress reach an agreement for the approval of the PEC (Proposal for Amendment to the Constitution) of the Precatory orders.
The government accepted changes to the text —which frees up more spending and makes Brazil Aid, among other measures—to reduce resistance in the Senate. The vote on the report in the CCJ (Committee on Constitution and Justice) of the House occur on Thursday (25), after being postponed on Wednesday.
From the market’s point of view, the proposal makes it possible to estimate the tax loss for 2022 and, therefore, reduces uncertainty about the risk of investments in companies in the country.
“The market turns its spotlight on the discussion due to the trajectory of the public debt and the impacts that this can generate in the Brazilian macroeconomics”, says Lucas Collazo, an investment specialist at Rico.
Petrobras rose 2.05%, on a day when the company’s president, Joaquim Silva e Luna, said in an interview with TV Jovem Pan that the company could be privatized in the future, but defended that the current governance rules already place the state-owned companies on an equal footing with those applied in the private sector.
Luna also confirmed that the company’s new business plan will maintain its focus on the pre-salt.
Oil fell 0.24%, to US$ 82.11 (R$ 459.98).
The retreat is considered timid given the release by the United States of a plan to release millions of barrels of strategic reserves in coordination with China, India, South Korea, Japan and the United Kingdom to try to ease prices, after OPEC ( organization of producing countries) and allies ignored calls to increase production.
Vale advanced 2.32% in another day of strong growth in the iron ore market. The price in spot trading at the Chinese port of Qingdao soared by 8.4%. Futures contracts rose 4.4% and already total five consecutive highs.
“There are expectations of a new infrastructure package in China, supporting the price of iron ore. Remembering that Japan and the United States have already released their packages,” said Jansen Costa, partner at Fatorial Investimentos.
Rafael Ribeiro, an analyst at Clear Corretora, highlights that the metallic commodities scenario was already gaining traction with China’s central bank promising new economic stimuli, but was further boosted by a statement by China’s Vice Prime Minister, Liu He, about the government’s intention to anticipate infrastructure works to boost domestic demand.
The announcements reinforce reports of the resumption of works by Chinese real estate companies and production, once restricted by the financial crisis at Evergrande and by the restraint in the use of coal to reduce CO2 emissions.
Banks Itau-Unibanco and Bradesco, with increases of 2.67% and 2.68%, close the list of companies with the most traded papers on Wednesday.
Banco Pan rose 5.19%, the biggest increase of the day. Natura fell 3.64%, the worst result of the trading session.
In the United States, the Dow Jones retreated 0.03%. The S&P 500 and Nasdaq indices rose 0.23% and 0.44%, respectively.
Wall Street ended higher on Wednesday on buoyant shares in Nvidia and other tech companies, while Gap and Nordstrom tumbled after weak quarterly reports, according to Reuters.
The two retailers issued alerts about supply chain problems ahead of the crucial holiday shopping season in the US.
Members of the Fed’s monetary policy council (the Federal Reserve, the US central bank) are willing to anticipate the bond purchase program and anticipate higher interest rates if high inflation continues, the minutes of the last meeting of the agency showed.
with Reuters
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