Brazil’s Ibovespa index, a key stock market indicator, saw an increase, fueled by major companies like Petrobras and Vale.
By 1 PM Brasília time, the Ibovespa had climbed by 0.57%. It reached 131,833 points. Meanwhile, the US dollar fell. It traded at R$ 4.87. This marked a 0.73% drop.
Investors paid attention to the Monetary Policy Committee’s (Copom) minutes. These minutes came from their latest meeting.
They echoed last week’s guidance. Then, Brazil’s Central Bank cut the Selic rate. It went down by 0.50 percentage points, reaching 11.75% annually.
The minutes hinted at further rate cuts. They suggested similar reductions might happen at future meetings.
This approach aims to keep monetary policy tight. Such a policy helps to slow inflation. Despite expectations, the pace of rate cuts did not increase.
This decision came as a surprise. It was different from the US Federal Reserve’s dovish signals. Neither the statement nor the minutes indicated a faster cut.
Brazilian Stocks Rise, Dollar Falls
Daniel Cunha from BGC Liquidez commented on this. He mentioned that the minutes were cautious.
They recognized better-than-expected inflation dynamics. Yet, they seemed timid about starting a more aggressive rate-cut cycle.
Itaú Unibanco saw the minutes differently. They viewed them as neutral. They noted no major changes in future policy directions.
The expectation remains. It involves a series of 50 basis-point moves.
Bank of Japan keeps interest rates negative
On the global front, the Bank of Japan (BoJ) made a decision. They chose not to change their monetary policy.
This kept their interest rates negative. Kazuo Ueda, the BoJ President, did not see the Fed’s choices as crucial for Japan. He suggested few changes to BoJ’s plans in early 2024.
Investors also watched the US housing market data. They listened to Raphael Bostic from the Federal Reserve Bank of Atlanta. He gave a speech.
The most traded stocks were from companies like Magazine Luiza and Bradesco. Petrobras PN and Itaú Unibanco were also on this list.
The previous session showed positive results for Ibovespa. It closed higher by 0.68% at 131,084 points.
Trading volume stood at R$ 960.439 million. Stocks like Alpargatas and Braskem were among the top gainers.
Klabin and Fleury saw significant drops. By then, Ibovespa’s yearly gain was 19.46%.
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Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+0.46%
183,827.59
+0.46%
65,071.30
+0.20%
11,055.91
-0.73%
2,782,561
-0.59%
2,558.92
-0.79%
60,220.45
+0.32%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 183,827.59 | +0.46% | +21.85% | 182,991.13 | 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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