Ibovespa, B3’s (São Paulo Stock Exchange) main index, closed at 110,146 points this Wednesday (Nov. 16). It fell 2.66% on the day.
The dollar rose 1.54%, to R$ 5.38, throughout the day.
Investors respond with caution to the proposal that will change the rule of the ceiling of public spending.
The text to be presented by the transition team of Luiz Inácio Lula da Silva should increase the expenditures of the Union to bank campaign promises, such as the Brazil Aid of R$600, readjustment of minimum wage, and more investments.
In an attempt to calm tempers, the vice-president-elect Geraldo Alckmin said at the end of the morning that Lula da Silva’s government would not be “spendthrift”.
But it didn’t work.
Poder360 found out that the text presented by the transition government to the Budget rapporteur, Marcelo Castro (MDB-PI), would remove Brazil Aid from the spending cap indefinitely.
That is forever.
The final proposal should be presented at night.
The Ibovespa opened the day at 113,166 points.
At the close, the index diverged from the main indexes of the global financial markets in the United States and Europe, which had a smaller retreat.