On Thursday, the Ibovespa, Brazil’s benchmark stock index, dropped by 0.43%, closing at 129,339 points.
This decline occurred despite a notable 1.80% increase in iron ore prices and uplifts in New York’s stock exchanges.
The fall was notably influenced by Petrobras (PETR4) shares, which decreased by 1.10% due to the international downturn in oil prices.
Investors’ focus now turns to Petrobras’s upcoming financial results, especially its dividend declarations and anticipated post-B3 closure.
Petrobras’s downturn notably impacted Ibovespa, diverging from the norm where Ibovespa, the dollar, and certain future interest rates usually align.
“The local market is deviating from its typical trajectory; there’s a sell-off in some shares,” observed Dennis Esteves from Blue3 Investments.
Despite the lateral movement of the Ibovespa since the previous year’s peak, Diego Faust of Manchester Investments remains positive, citing the market’s intriguing dynamics.
Esteves points out the market’s anticipation for more liquidity to gain momentum.
The forthcoming American employment report, the payroll, expected tomorrow, might catalyze this movement. “The payroll data is eagerly awaited,” he added.
Ibovespa’s future direction and its potential to attract foreign capital investments hinge on payroll outcomes and U.S. monetary policy signals.
“The exit of foreign investments has been impactful. March showed disillusionment regarding the early signals of interest rate cuts. However, a cut may occur in June,” Faust noted.
On Thursday, iron ore prices surged by 1.83% to $123.64 per ton in Dalian, China.
China’s trade data showed a 7.1% rise in exports for January and February, surpassing analyst expectations of 3.0%.
European markets gained moderately, and Wall Street advanced as Powell hinted at potential U.S. interest rate decreases this year.
Market Updates and Powell’s Insights
The Dow Jones, S&P 500, and Nasdaq observed respective increases of 0.34%, 1.03%, and 1.51%.
Powell further indicated the Federal Reserve’s closeness to gaining enough confidence in inflation reduction to initiate interest rate cuts.
Nonetheless, any adjustments will rely on economic progress and continued moderation in price increases, leaving the Fed data-dependent.
Following its monetary policy meeting, the European Central Bank (ECB) kept its main interest rates steady for the fourth consecutive time.
This leaves the refinancing rate at 4.50%, the deposit rate at 4%, and the lending rate at 4.75%, aligning with analyst predictions.
Attention now shifts back to Powell, who is expected to address the Senate.
Investors, besides awaiting Petrobras’s financial results, are also scrutinizing the quarterly earnings of companies like 3R Petroleum (RRRP3), CSN (CSNA3), and CSN Mining (CMIN3).
The previous session saw the Ibovespa close up 0.62% at 128,890.23 points after two consecutive declines.
The U.S. dollar depreciated against the Brazilian real, ending 0.23% lower at R$4.9347, influenced by Powell’s statements.