This week, Ibovespa dropped by 0.74% to 126,741 points, continuing its downward trend for the third week by losing 0.26%.
The dollar reached R$5 but ended at R$4.99, up by 0.22%. Interest rates also saw a rise, mostly staying above 10%.
Guide Investments highlighted that market volatility might continue until the Federal Reserve’s interest rate decision.
StoneX’s Leonel Mattos pointed out a cautious market environment, influenced by concerns over the U.S. economy, which may lead the Fed to a prolonged firm stance.
Wall Street’s decline also impacted São Paulo’s market, unaffected by positive signs in the U.S. industry recovery and Brazil’s service sector growth in January.
Despite a 0.7% increase in service sector data, exceeding expectations due to a robust job market and wage gains, Ibovespa did not see a lift.
Lucas Barbosa of AZ Quest linked the activity surge to strong employment and improved credit conditions.
The announcement of 180.4k new formal jobs in Brazil this January surpassed forecasts but didn’t boost Ibovespa.
Yduqs’ shares fell 9.76% post-Q4 2023 results, revealing unexpected expenses. Lojas Renner saw a 6.72% drop, stirring speculation on leadership impacts versus performance.
Gerdau experienced a 1.98% decline, despite favorable analyst views. Off the main index, Tenda jumped 10.05%, hinting at upward projections, while Petz fell 4% amidst merger news.
Vale and Petrobras saw decreases of 1.14% and 0.28%, respectively, affected by global commodity trends. The oil and iron ore markets face demand challenges.