The Ibovespa holds 130,000 points with the advance of Vale and Petrobras, but closes down pressured by fiscal caution (Image: REUTERS/Amanda Perobelli)
Pressured by fiscal caution, Ibovespa (IBOV) ended Monday's session (23) down. Losses were limited by the performance of the index's 'heavyweights', Vale (VALE3) and Petrobras (PETR3), combined with the advance of the New York stock exchanges.
The main index of the Brazilian stock exchange fell 0.38% to 130,568.37 points.
Already the dollar in sight (USBRL) ended the session R$ 5,5353 (+0,26%).
On the domestic front, investors reacted to the Bimonthly Report on Primary Revenues and Expenditures for the 4th two-month period, released last Friday (20).
The federal government announced an additional budget freeze of R$2.1 billion, but the R$3.8 billion that had been set aside in July was reversed. Thus, there was a R$1.7 billion reduction in spending cuts, which fell from R$15.0 billion to R$13.3 billion.
The market considered a new block of R$5 billion, taking expense containment to R$20 billion.
Finance Minister Fernando Haddad stated that federal government spending remains within the rules of the fiscal framework and guaranteed that the Executive will be able to meet the target for this year's public accounts.
Vice President and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, also said that the federal government will “rigorously” comply with the fiscal framework.
“We will comply with the fiscal framework. There was a small release of contingency, because as the economy grew — we could reach 3% or more last year — revenue increased, obviously, which is why there was a small release of contingency, but the fiscal framework was strictly maintained,” he said at an event at the Federation of Industries of the State of São Paulo (Fiesp).
Stock market ups and downs
Among the assets traded on the Ibovespa, the shares of Santos Brazil (STBP3) led the gains on the Ibovespa. The company's shares jumped more than 19% during the session in reaction to the sale of a 48% stake in Opportunity to container shipping company CMA CGM.
Bradesco BBI and Ágora Investimentos assess that the operation between Opportunity and CMA CGM may have a “cross-reading” for mergers and acquisitions negotiations involving the controlling block of Wilson Sons.
Itaú BBA highlights that the operation could potentially trigger a “bidding war” for STBP3, with the possibility of other players with a strong presence in the port of Santos to be involved in the negotiation of the remaining 52% stake.
On the negative end, Usiminas (USIM5) led losses on the main Brazilian stock index after JP Morgan downgraded the company's shares from buy to sell. The bank also cut its target price from R$11 to R$5.50.
Between blue chipsVale (ELECTION 3) out of step with the performance of iron ore. Commodity prices remain under pressure due to the prospect of weak demand from China, amid an uneven economic recovery and increased supply.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) ended trading down 4.5% at $93.38, its lowest level since Aug. 17, 2023.
Petrobras (PETR4;PETR3) also operated against the trend of oil and ended the day higher. Banks, in turn, retreated en bloc, with low financial flow.
Exterior
Nos USAthe indexes followed the pace of increases of last week and Wall Street ended the session on a positive note. The S&P 500 and Dow Jones indexes renewed their historical closing records once again.
As investors await new inflation data, they followed statements from Federal Reserve (Fed) officials.
Among them, Atlanta Fed President Raphael Bostic said inflation and unemployment were approaching normal levels, suggesting an opening for a rapid pace of future cuts.
Minneapolis Fed President Neel Kashkari said he expected an additional 50 basis points of reduction by the end of the year.
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: +0.28%, at 5,718.57 points;
- Dow Jones: +0.15%, at 42,124.65 points;
- Nasdaq: +0.14%, at 17,974.27 points.
*With information from Reuters