Brazil: lower-than-expected inflation cheers investors
The Ibovespa, the main index of the Brazilian Stock Exchange (B3), ended the trading session on Tuesday (11) with a strong rise of 4.3%, at 106,000 points.
The dollar closed the session with a sharp drop of 1.15%, quoted at R$5. It is the lowest value in ten months.
The performance in Ibovespa’s score was the best since February 23, when the index ended the day slightly above 107,000 points.
Despite the good result, the stock market remains negative in the year – a fall of 3.2%.
The release of an IPCA number below the market’s consensus boosted the investors’ excitement.
This was the first time since January 2021 that the accumulated indicator for 12 months was below 5%.
The scenario brings relief to investors, who now have a higher expectation of the possibility of a drop in the basic interest rate.
Similarly, the possible presentation of the fiscal framework next Friday (14) also stirs the outlook and makes the Ibovespa performance positive.
IBOVESPA SOARS, AND THE DOLLAR FALLS
The domestic performance is also reflected in the dollar rate.
With the slowdown in inflation, there may be a decrease in interest rates.
Investors migrate to riskier assets, such as the stock market, and leave aside safer investments, such as the dollar.
Another data anxiously awaited by the market concerns the disclosure of inflation in the United States.
Thus, strong movements can mean an increase in the North American interest rate.
This means that the dollar will still have internal ballast to remain strong.
However, the index can impact the country’s medium- and long-term investment capacity.
The International Monetary Fund (IMF) lowered its forecast for growth in the global economy to 2.8% in 2023.
In addition, the IMF also cut the growth estimate in 2024 to 3%.
Check out the main market indicators:
- Ibovespa: 106,213.76 (+4.29%)
- S&P 500: 4.109,05 (0,00%)
- Nasdaq: 12,031.88 (-0.43%)
- Dow Jones: 33.685,12 (+0,29%)
- Dollar: R$5.00 (-1.16%)
- Euro: R$5.46 (-0.67%)
With information from Revista Oeste
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+1.79%
170,934.30
+1.79%
65,223.89
+1.36%
11,379.66
+1.26%
2,904,791
+1.00%
2,465.35
+0.86%
58,698.13
+2.27%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 170,934.30 | +1.79% | +21.85% | 167,927.15 | 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 |
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