The Brazilian Stock Exchange rose 1.37% this Friday (5), to 104,824 points, closing the week with a gain of 1.28%. The positive weekly performance occurred after four consecutive months in the red, in which the Ibovespa, The Stock Exchange’s benchmark index recorded a decline of more than 18%. In 2021, the drop is 11.93%.
The dollar retreated 1.53% to R$5.5220, reaching a weekly drop of 2.12%.
The improvement in the indicators in Brazil is mainly attributed to the market’s assessment that the PEC (proposed amendment to the Constitution) of the precatoria will be approved by Congress, allowing the government to accommodate the Auxílio Brasil, a replacement for Bolsa Família, in the 2022 Budget. , with a benefit of at least R$400.
Investors assess that, although the Precatório PEC creates some insecurity by postponing the payment of judicial debts by the government and making official the dribble in the spending ceiling, the creation of more expenses without counterparts would increase the uncertainty about the country’s fiscal risk.
The tight approval in the first round in the Chamber of Deputies raised fears about the prospects of voting in the second round in the House, before proceeding to the Senate. This Friday, the president of the Chamber, Arthur Lira (PP-AL), guaranteed that the PEC will be approved in the second round in the House, even with more votes than in the first vote. The forecast is for the vote to take place next week.
Despite the criticism at the time of the announcement of the proposal, the market resigned and now considers that the PEC is a possible option for the adoption of Auxílio Brasil.
The DI interest rate for 2023, the reference for most short-term contracts, was practically stable compared to the day before and closed at 12.1% per year, 0.18 percentage point below the highest closing this week, on Monday (1st), when it had reached 12.28%.
The easing of the interest curve this Friday boosted companies in the domestic sector, which contributed to the rise of the stock market, according to Rafael Ribeiro, an analyst at Clear.
Magazine Luiza (MGLU3) shares rose 12.27% and Via (VIIA3), 10.79%. In addition to the relief in interest rates, more optimistic expectations about Black Friday boost the sector, according to Rodrigo Moliterno, head of variable income at Veedha Investimentos.
The harvest of balance sheets also impacted the market this week, with emphasis on Bradesco (BBDC4), which closed the trading session at a high of 4.93% after the release of results.
PetroRio (PRIO3) rose 17.87%, the biggest increase of the day, after the consortia led by the company moved towards an exclusive negotiation for the purchase of two Petrobras production fields in the Campos Basin, in Rio de Janeiro. Already the shares of Petrobras (PETR4) retreated 0.58%.
Brent oil, a benchmark for the market, rose 2.14% to US$ 82.26 (R$ 456.12).
The main US market indices renewed records this Friday after a strong US jobs report. The Dow Jones, S&P 500 and Nasdaq indices closed with increases of 0.56%, 0.37% and 0.20%, respectively.
531,000 urban jobs were created in the US last month. Economists consulted by Reuters expected 450,000 jobs to be opened.
Investors also celebrated the release of positive data for an experimental Pfizer pill against Covid-19.
Gains on Wall Street were boosted this week after the Fed (Federal Reserve, the central bank of the United States) made it official that the withdrawal of economic stimuli created in the pandemic will be smooth, with a decrease of US$ 15 billion (R$ 83.17 billion) in its monthly purchases of US$ 120 billion (R$ 665.38 billion) in assets. The Fed also announced that it will not raise the country’s base rates for the time being.
The combination of factors that resulted in the rises in the US stock exchanges also favored the partial recovery of the real against the dollar, since the maintenance of low interest levels on US Treasury bonds encourages foreign investment in emerging economies, which pay more premiums. high.
with Reuters
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