Ibovespa falls again to 131 thousand points with Wall Street and surprise with inflation preview; dollar rises to R$ 5.47 – Money Times


ibovespa

The Ibovespa followed the weakness of the New York stock exchanges and increased uncertainty about the pace of monetary tightening by the Central Bank after the IPCA-15 was weaker than expected (Image: Reuters/Amanda Perobelli)

After a brief respite with support from China, the Ibovespa (IBOV) did not sustain the pace of gains and returned to a negative tone this Wednesday (25).

The main index of the Brazilian stock market fell 0.43%, to 131,586.45 points.

Already the dollar in sight (USBRL) ended the session R$ 5,4761 (+0,24%).

On the domestic scene, investors reacted to the Broad National Consumer Price Index 15 (IPCA-15).

The preview of inflation official recorded an increase of 0.13% in September, against 0.19% in August, well below market expectations.

In Itaú's assessment, the data came in significantly below our expectations and with a much better opening than expected, especially due to the bearish surprise in underlying services.

“On the other hand, underlying services linked to labor and food outside the home remain well behaved, despite the tight labor market,” writes economist Luciana Rabelo, in a note.

In addition, Brazil recorded a larger-than-expected current account deficit and lower-than-expected direct investment in August, according to data from the Central Bank.

The current account deficit reached US$6.589 billion in the month, with the accumulated deficit over 12 months totaling the equivalent of 1.75% of the Gross Domestic Product. In August of last year, the current account had been negative by US$969 million.

The result was worse than market expectations, according to a Reuters survey of experts, which pointed to a negative balance of US$5.25 billion in August.

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Stock market ups and downs

Among the assets traded on the stock exchange, the meatpacking sector attracted the day's attention.

The Administrative Council for Economic Defense (Cade) approved the sale of assets of Marfrig (MRFG3) for the Minerva (BEEF3), with restrictions. Among the “remedies”, Minerva will be forced to sell the plant located in Pirenópolis (GO), currently inactive.

The expectation is that the operation will be completed by the end of October.

After the endorsement, the shares MRFG3 became among the largest on the Ibovespa and closed the session up almost 2%.

But the positive tip of the main index of the Brazilian stock exchange was led by Braskem (BRKM5), which jumped more than 4% in the final stretch of trading.

CSN Mining (CMIN3) competed for the lead in earnings with the support of iron ore. Vale (ELECTION 3) also extended the previous day's high.

With the announcement of new stimulus in China, commodity futures rose more than 4% today.

The January contract of ore The most-traded iron ore on the Dalian Commodity Exchange (DCE) ended trading for the day up 4.19 percent at 709 yuan ($101.02) a tonne.

Already on the negative end, Brave Energy (BRAV3) wiped out the previous day's gains, with performance driven by oil — which fell more than 2%. Petrobras (PETR4;PETR3), in turn, it closed slightly higher, against the trend of the commodity.

The actions of the Assai (ASAI3) were also among the biggest falls on the Ibovespa after Citi downgraded its recommendation from buy to neutral/high risk.

Exterior

Nos USAinvestors continued to wait for new inflation data. Wall Street operated volatile following the corporate news.

The market is awaiting the release of the August Personal Consumption Expenditures (PCE) Price Index — the Fed's preferred inflation benchmark.

Check out the closing of the New York indexes:

  • S&P 500: -0.19%, at 5,722.26 points;
  • Dow Jones: -0.70%, at 41,914.75 points;
  • Nasdaq: +0.04%, at 18,082.21 points.

*With information from Reuters

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