Brazil: dollar is around R$5.20 and Ibovespa advances with PEC and mood abroad on the radar

The Ibovespa extends the previous session’s rally and advances this Wednesday (21), amid a good mood abroad and with investors monitoring the domestic political scene.

Here, attention is focused on the second round vote, in the Chamber of Deputies, on the Transition PEC (Proposal for Amendment to the Constitution). The text approved yesterday, in the first round, maintains the expansion of the spending ceiling at R$145 billion in 2023, but reduces the term to one year, which reduces the fiscal impact of the proposal.

Approved by the Federal Senate two weeks ago, the text is considered a priority by the team of president-elect Luiz Inácio Lula da Silva (PT). The new government tries to guarantee resources for the payment of Bolsa Família with installments of R$600, in addition to an additional R$150 for families with children up to six years old.

INTERNATIONAL MARKETS

On the external scene, stocks are boosted in the US by better-than-expected results from Nike and FedEx. The shares of the companies rose up to 13% and 4.2%, respectively, before the opening of the American markets. Tesla also advanced more than 2% in New York after billionaire Elon Musk said he would step down as CEO of Twitter once he finds a successor.

The dust began to settle on Wednesday after Japan raised the yield cap on its 10-year bonds, although the move triggered bets that Japan’s central bank will join its peers next year to raise interest rates. fees.

The rise in yields has already shrunk the world’s stock of negative-yielding debt to about US$686 billion from a peak of US$18.4 trillion reached two years ago.

Check out the performance of the markets this Wednesday (21):

• Around 1:00 pm (Brasília time), the Ibovespa advanced 0.27%, to 107,151 points;
• The spot dollar was hovering around stability, at R$5.20;
• Among futures interest contracts, the DI for 2027 retreated 12 basis points, to 13.08%;
  In the US, the Dow Jones rose 1.69%, the S&P 500, 1.63%, while the Nasdaq was up 1.75%.

With information from Bloomberg Línea