Brazil: Ibovespa falls, and the dollar advances with external caution and worsening in the IPCA’s projections
The Ibovespa fell on Monday (6), following the feeling of caution abroad.
In a day of empty agenda, investors continue digesting the payroll data released on Friday (3), reiterating that the United States’s labor market remains strong.
Around 1 pm (Brasília time), the main variable income index of the Brazilian stock market retreated 0.62%, below 108,000 points.
The dollar, which had risen earlier reflecting the foreign market, extended gains and was traded at R$5.20 after President Luiz Inácio Lula da Silva (PT) reaffirmed his criticism of the independence of the Central Bank.
On the domestic scene, investors also monitor Aloizio Mercadante’s tenure at the National Economic and Social Development Bank (BNDES).
The highlight is President Lula, who discusses the Income Tax (IR) exemption for those who receive up to two minimum wages already this year.
Currently, the exemption occurs for those who receive up to R$1,903.
The change provides that those who earn up to R$ would not need to declare income tax.
Among the indicators, the Focus report from the Central Bank pointed to worsening inflation and Selic rate projections.
Now, economists see a high of 5.78% for the IPCA this year, compared to a previous estimate of 5.74%.
On the external scene, the highlight is the increased tensions between the United States and China.
The US sent divers to rescue a Chinese balloon off the coast of South Carolina that they believe to be spy equipment, with growing pressure on President Joe Biden to hit back at Beijing with new export control measures.
Check out the markets’ performance on Monday:
- Around 1 pm (Brasília time), the Ibovespa retreated 0.63%, at 107,872 points;
- The spot dollar advanced 1.33% to R$5.20;
- Among future interest rate contracts, the DI for 2027 was up 12 basis points, at 13.30%;
- The indexes dropped in the USA: the Dow Jones fell 0.31%, the S&P500 0.55%, and the Nasdaq down 0.73%.
With information from Bloomberg
Key Facts
— Deep Dive
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.21%
174,951.12
+0.21%
66,644.91
+0.53%
11,369.64
-0.71%
3,019,891
+0.36%
2,493.32
-0.60%
60,449.35
+0.24%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 174,951.12 | +0.21% | +21.85% | 174,576.80 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
— For the complete picture, read our in-depth guide: Latin America Stock Markets 2026: Ibovespa, Merval, COLCAP, IPSA and IPC Guide
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