The Ibovespa index fell on Friday, dropping beneath the 130,000-point mark. This break ended its six-day upward trend.
Profit-taking and Petrobras share declines influenced this drop, along with U.S. interest rate cut concerns.
The Brazilian stock market’s benchmark, Ibovespa, decreased by 0.63% to 129,418.73 points.
Yet, it ended the week up by 0.54%. The day saw highs of 130,624.33 points and lows of 129,077.28 points.
The day’s trade volume hit 21.66 billion reais.
Market recovery had been ongoing after an early-year fall, noted Terra Investimentos’ Luis Novaes. Still, risk asset outlooks didn’t boost peak indices.
Economist Alexsandro Nishimura from Nomos observed that Ibovespa’s rise was limited. It didn’t fully leverage Nvidia’s global tech stock rally excitement.
Wall Street showed mixed results. The S&P 500 slightly rose by 0.08%, the Dow Jones increased by 0.21%, but the Nasdaq dipped by 0.21%.
Novaes highlighted the Federal Reserve’s cautious approach to interest rate cuts. Inflation concerns and premature rate cut discussions were key points.
Christopher Waller of the Federal Reserve proposed delaying rate cuts to assess inflation’s impact on price stability.
In Brazil, Central Bank’s Diogo Guillen focused on wage data amidst labor market uncertainties, analyzing their inflation effect.
Falling global oil prices affected Petrobras shares, heavily influencing the index.
B3’s disappointing earnings also impacted, countered by Vale’s positive results, added Buena Vista Capital’s Renato Nobile.
Key Movements
- Vale saw a slight share increase of 0.24% to 67.38 reais. Despite a net profit drop of 35% to $2.42 billion for Q4 compared to last year, the company announced nearly 2.74 reais per share in dividends. Vale aims to increase sales outside China, targeting growth in Japan and Europe. China’s most traded iron ore futures ended up 0.45% at 899 yuan ($124.91) per ton.
- Petrobras shares fell 0.69% to 41.90 reais, impacted by lower international oil prices. Brent crude dropped by 2.5%. The company earlier announced a 250 million reais investment in cultural projects.
- B3’s shares declined by 1.58% to 12.45 reais. Its Q4 net profit fell 8.8% year-over-year to 915.5 million reais, missing analyst predictions. Its net revenue decreased by 2.8% to 2.24 billion reais.
- ITAÚ UNIBANCO’s shares slightly increased by 0.29% to 34.26 reais. In contrast, BRADESCO’s shares dropped 1.29% to 13.89 reais, and BTG PACTUAL’s shares went down 2.3% to 36.95 reais.
- CASAS BAHIA’s shares decreased by 6.93% to 8.33 reais after a 16% gain in the previous six sessions. MAGAZINE LUIZA’s shares went up 1.9% to 2.15 reais after a 7.65% rise the day before.
- LOJAS RENNER’s shares grew by 0.86% to 15.26 reais. JPMorgan analysts kept an “overweight” rating and upped their price target from 15.50 to 17 reais, anticipating better-than-expected growth trends in Brazil.