Ibovespa ignores Wall Street's 'party' and closes down at 133,000 points; dollar falls to R$5.42 – Money Times


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The Ibovespa ignored the rise in the New York and commodities stock exchanges, with investors adjusting positions after the Selic rate hike (Image: Getty Images Signature)

The post-' climatesuperquarta' was a party on Wall Street, with the first cut in US interest rates in more than four years. The Ibovespa (IBOV), however, did not keep up with the pace abroad and the session was marked by the adjustment of positions, while investors continued to calibrate bets on the trajectory of interest rates in the 'mini-cycle' of monetary tightening initiated by the Central Bank the day before.

This Thursday (19), the main index of the Brazilian stock exchange closed at down 0.47% to 133,122.67 points.

Already the dollar in sight (USBRL) ended the session R$ 5,4242 (-0,69%).

On the domestic front, investors followed new economic data, amid the reaction to the rise in the basic interest rate, the Selic, and corporate news.

Federal government revenues rose 11.95% in real terms in August compared to the same month last year, totaling R$201.622 billion — the best result for the month in the historical series that began in 1995, according to data from the Federal Revenue Service.

From January to August, revenues totaled R$1.731 trillion, 9.47% higher than in the first eight months of 2023, after adjusting for inflation. This result also represents a record for the period.

Yesterday (18), the Monetary Policy Committee (Copom) unanimously decided to raise the Selic rate by 25 basis points, to 10.75% per year, starting a 'mini-cycle' of interest rate hikes – which should continue, at least, until January 2025, according to analysts.

In the statement, the Committee stated that “the scenario, marked by resilience in activity, pressures in the labor market, a positive output gap, rising inflation projections and unanchored expectations, demands a more contractionary monetary policy”.

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Stock market ups and downs

Among the assets traded on the stock exchange, AgroGalaxy (AGXY3) shares fell more than 25% during trading as the market reacted to the request for judicial recovery last Wednesday (18). On the same day, the president and five other directors of the company resigned from their positions.

Today, the director of Agricultural Risk Management at the Ministry of Agriculture, Jônatas Pulquério, stated that RJ is “a worrying sign for Brazilian agribusiness and, especially, for the capital market”, on social media.

Already in Ibovespa, meatpacking plants operated among the highest increases in the index.

The highlight of the positive end, however, was São Martinho (SMTO3). The company's shares advanced after JP Morgan raised its recommendation for the shares from neutral to buy.

Azul (AZUL4) had another volatile day. In the early hours of trading, the airline's shares rose by more than 6%, driven by the release of funds from the National Civil Aviation Fund (Fnac), which was sanctioned by President Lula yesterday (18). However, as trading continued, the shares cooled their gains.

Between aces blue chips, Petrobras (PETR4;PETR3)

Vale's shares (ELECTION 3) recovered the previous day's losses. With no corporate news, the company followed the performance of iron ore in China. The most traded commodity contract on the Dalian Commodity Exchange (DCE) futures market, for January 2025, ended trading up 1.69%, at US$ 97.85 per ton.

The negative end of the Ibovespa was led by Brava Energia (BRAV3) after the company informed the market that the expectation of return of production from the Papa Terra field was updated to the beginning of December 2024.

According to analysts at Bradesco BBI and Ágora Investimentos, the expectation was for a faster resumption of operations, which justifies the market's negative reaction.

Exterior

Nos USA, Wall Street started trading with the main indexes rising more than 1% and extended the gains throughout the session.

Investors continued to react to the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points, to the range of 4.75% to 5.00% per year.

This was the first reduction since March 2020 and marks the beginning of the monetary easing cycle in the United States.

Furthermore, new labor market data reinforced the prospect of a “soft landing” for the US economy.

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, suggesting that job growth accelerated in September.

Initial claims for state unemployment benefits fell by 12,000 last week to a seasonally adjusted 219,000 in the week ended Sept. 14, the Labor Department said on Thursday (19). Economists polled by Reuters had forecast 230,000 claims for the latest week.

Check out the closing of the New York indexes:

  • S&P 500: +1.70%, to 5,713.64 points;
  • Dow Jones: +1.26%, at 42,025.19 points;
  • Nasdaq: +2.51%, at 18,013.98 points.

Dow Jones and S&P 500 closed at their highest level in history.

In Europe, the Bank of England (BoE) kept interest rates unchanged at 5.00% per year.

The pan-European Stoxx 600 index closed up 1.38% at 521.67 points, its highest closing level in more than two weeks. The DAX, the main index of the German stock exchange, renewed its all-time closing record at 19,000.25 points.

*With information from Reuters

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