The Ibovespa ended with a slight gain after a volatile session, influenced significantly by Vale and Embraer’s performances.
It closed up by 0.17%, reaching 126,954.18 points, marking an increase of 212.37 points.
Meanwhile, the dollar saw a rise of 0.57% to R$5.02, with future interest rates also trending upward.
This fluctuation in the market was not tied to political events such as Putin’s re-election but stemmed from various domestic and international factors.
European markets mixed, US markets surged, investors await Federal Reserve’s rate decision and economic outlook.
The focus remains high on the Federal Reserve‘s upcoming decision, with a near-certain expectation of unchanged rates.
However, the likelihood of a rate cut in June has recently decreased to around 55%.
In Asia, markets closed higher, encouraged by China’s stronger-than-expected economic data and the Bank of Japan’s awaited interest rate decision.
In Brazil, the IBC-Br index, a precursor to GDP figures, showed growth beyond forecasts, bringing a positive vibe to the market.
This represents the fifth consecutive monthly rise for the IBC-Br, improving the statistical carryover effect for Q1 2024 from 0.6% to 1.2% against Q4 2023.
Economists predict a 1.4% growth in the IBC-Br for Q1 2024 over Q4 2023.
XP’s GDP Tracker also indicates a 0.8% expansion in Q1 2024 compared to the previous quarter, with a 2.5% year-on-year increase.
Strong growth expected fueled by job market, wage hikes, debt payments, and agribusiness impacts.
Despite the upbeat economic indicators, the stock market fluctuated during the day.
Petrobras shares rise with oil prices; Vale’s jump 1.91% due to Chinese data boosting iron ore prices.
Investors focus on upcoming interest rate decisions, indicating potential short-term volatility.