Ibovespa lost 133 thousand points driven by the negative performance of Vale and Petrobras; index advanced more than 1% in the week with China (Image: Reuters/Amanda Perobelli)
With a week full of data in Brazil and abroad, the Ibovespa (IBOV) ended the last session on a negative note driven by the 'heavyweights' of the index.
This Friday (27), the main index of the Brazilian stock exchange fell 0.21%, to 132,730.36 points. During the week, the index accumulated an increase of 1.28%.
Already the dollar in sight (USBRL) ended the session R$ 5,4361 (-0.16%). The US currency accumulated a drop of 1.54% in the last five trading sessions.
In the domestic scenario, investors reflected on new data from the labor market.
The unemployment rate stood at 6.6% in the three months to August, slightly below market consensus. According to IBGE, the unemployment rate is the lowest for the quarters up to August in the entire historical series. Furthermore, the rate is the lowest since the quarter ended in December 2014.
Also in August, the country created 232,513 jobs, slightly lower than expected.
The market also followed new statements from the Central Bank's director of Economic Policy, Diogo Guillen. He stated that the municipality's achievement of the continuous inflation target is “completely feasible”.
“In the past, the target was also different, the target was not 3%. So, expectations were at another level, because the goal was at another level.”, stated Guillen.
The president of the BC, Roberto Campos Neto, stated that, although inflation in Brazil has shown “some improvement”, there is still uncertainty about its components.
In the background, the General Price Index – Market (IGP-M), considered “rent inflation”, accelerated more than expected by analysts in September, rising 0.62%, after having advanced 0.62%. 29% in the previous month.
Stock market rises and falls
Among the assets traded on the exchange, the Azul (AZUL4) returned to operating among the biggest gains, even with the prospect that negotiations with aircraft lessors are close to being concluded.
The highlight of the day, however, was SLC Agricola (SLCE3). Shares rose more than 6% with the release of the guidance for the 2024/2025 harvest. According to the company, the planted area will be 736.9 thousand hectares, with growth of 11.4% compared to the 2023/2024 harvest.
On the negative side, the mining and steel sector made recent gains, despite a new rise in iron ore.
In yet another round of stimulus, the Central Bank of China (PBoC) announced a cut in the reserve requirement rate — the amount of money that banks must keep as reserves. This was the second reduction this year aimed at supporting economic growth.
The most traded January iron ore contract on China's Dalian Commodity Exchange (DCE) ended the day's trading up 4.38%, at 750 yuan ($106.94) a ton — the highest level since September 2nd.
CSN Mineração (CMIN3) gave back recent gains and led the trading session's losses. Vale (VALUE3) zeroed the day's gains in the final stretch of the trading session with the news that Cosan (CSAN3) is considering selling assets, including its partial or total stake (of 4.1%) in the mining company.
Petrobras (PETR4;PETR3) also ended the day against oil. The market was waiting for information about the meeting between President Luiz Inácio Lula da Silva and the president of the state-owned company Magda Chambriard. According to news agencies, the ministers of the Civil House, Rui Costa, and of Mines and Energy, Alexandre Silveira also participated.
In the week, CSN (CSNA3) led the Ibovespa gains with an increase of almost 20%. Hapvida (HAPV3) was the biggest drop.
Exterior
Nos USAthe most anticipated day of the week on Wall Street has arrived.
The Price Index (PCE) rose 0.1% in August. For the year, inflation has risen to 2.2% — close to the Federal Reserve's 2% target. The data came in slightly below expectations.
After the data, bets on a 50 basis point interest rate cut by the Federal Reserve in November increased.
Os traders they now see a 54.7% chance that the US central bank will reduce interest rates to the range of 4.25% to 4.50% per year, according to the CME Group monitoring tool. Yesterday (26), this probability was 49.3%.
As a result, bets on a 25 basis point cut, which would place US interest rates in the range of 4.50% to 4.75% per year, fell from 50.7% (yesterday) to 45.3% today.
In particular, the Dow Jones index renewed its closing record.
Check out the closing of New York indices:
- S&P 500: -0.13%, at 5,738.17 points — at the highest closing level;
- Dow Jones: +0.33%, at 42,313.00 points;
- Nasdaq: -0.39%, at 18,119.59 points.
For the week, the S&P 500 and Nasdaq rose 1%. Dow Jones advanced 0.7% in the last five sessions.
*With information from Reuters