Brazil’s Ibovespa interrupts bullish sequence and closes down; index rose 2.7% in the week

RIO DE JANEIRO, BRAZIL – The Ibovespa once again took off from Wall Street, but this time at a disadvantage in relation to the American Stock Exchanges. The index interrupted a three-day straight bullish streak, pulled down by the portfolio’s heavyweight stocks. Nevertheless, it accumulated a positive balance in the week.

At 111,910 points, Ibovespa closed the day down 0.62%, with a financial volume of R$31.9 (US$6) billion. However, in the week, the index accumulated a high of 2.7%.

It was a negative Friday for the stock market’s main blue chips. Vale (VALE3) shares closed down 0.98%, at R$83.66. Petrobras (PETR3;PETR4) fell more markedly. PETR4, which traded R$3.9 billion in yesterday’s session, closed down 3.96% at R$32.54.

The oil company’s shares reflected statements by ex-president Lula, the frontrunner in the presidential polls for this year’s elections. He advocated the end of the pairing of Brazilian fuel prices to the international market and also the interruption of dividend payments.

Monte Bravo Investimentos Rodrigo Franchini says that the statement impacted the market, but by itself was unable to create a sell-off. “After successive days of highs and a very good month, it makes sense to have a price adjustment for investors to pocket gains and analyze positions,” he says.

Despite the bearish stock market yesterday, the dollar also closed negative again. The American currency fell 0.62%, to R$5.389 to bid and R$5.390 to ask. It was its lowest quotation in almost 4 months. In the week, the dollar dropped 1.2%.

The session was of strong volatility for future interest rates, which fluctuated between highs and lows throughout the day. At the end of the extended session, contracts for January 2023 were stable at 12.24%. The DI for January 2025 rose 2 basis points to 11.34%, while contracts for January 2027 rose 3 basis points to 11.32%, and contracts maturing in January 2029 closed at 11.46%, up 4 basis points.

In the United States, the Stock Exchanges relented and closed the day trading high. Business was driven by positive corporate results, particularly Apple’s figures, released Thursday night.

The Dow Jones closed up 1.65% at 34,725 points; the S&P 500 rose 2.44%, at 4,431 points and the Nasdaq climbed 3.13% to 13,770 points.

However, investors remain alert to the prospect of interest rate hikes by the U.S. Federal Reserve at its monetary policy meeting next March.

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