In the final stages of March, Ibovespa experienced a notable uptick, closing 0.65% higher at 127,690 points, thanks to a last-minute boost.
This push added 827 points to the Brazilian stock market’s main index. Concurrently, the commercial dollar dipped by 0.07% to R$4.97, while long-term interest rates edged up.
This rise in São Paulo’s market was partially mirrored by positive trends in New York, setting the stage for the upcoming final report on the US GDP for 2023.
Also, the personal consumption expenditure (PCE) index release is on the horizon, coinciding with holidays in both the US and Brazil.
This timing suggests investors might adjust their positions in anticipation, hoping to extend the current rally on Wall Street.
Massote from One Investments noted the session’s stability, attributed to a lighter schedule of international indicators.
Domestically, February’s Caged data revealed 306,000 new jobs, outperforming the anticipated 245,000.
This indicates a strong formal job market, likely to fuel domestic demand, as per Rodolfo Margato of XP.
He predicts a 2.5% increase in household spending due to job and real wage growth, expecting 1.45 million new formal jobs in 2024.
Despite a quiet data day, earnings reports made waves. CVC (CVCB3) saw a 6.48% drop, while IMC (MEAL3) plummeted by 18.96%.
Conversely, Agrogalaxy (AGXY3) jumped by 17.65%. These outcomes show the market’s volatile reaction to corporate performance.
Market Insights and Analysis
Key companies had mixed results. Rede D’Or slightly increased after a dip, closing up by 0.05% post its Q4 2023 earnings release, which received mixed reviews.
JBS fell by 2.19%, though its future might brighten with Seara’s recovery.
Stock recommendations kept analysts busy. SLC Agrícola and Klabin saw gains after positive reviews, suggesting buying opportunities, especially in the paper and pulp sector.
Vale and Petrobras successfully bucked the downward trend in their respective commodities, registering gains of 0.92% and 0.80%, respectively.
This defiance came as iron ore and international oil prices faced pressure. Magazine Luiza, after its earnings release, ended as the session’s most traded stock, climbing 2.25%.
On the political front, Haddad’s ongoing negotiations with Congress aim for a zero deficit, a goal dependent on legislative support.
As March and the first quarter drew to a close, the year progressed rapidly, underscoring the interconnectedness of market performance, economic indicators, and political efforts.