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The Brazilian stock market maintained its position above 127,000 points for the fourth consecutive session as investors awaited news on fiscal measures.
On Wednesday, November 13, 2024, Ibovespa, Brazil’s main stock index, closed with a slight increase of 0.03%, reaching 127,733.88 points.
The US dollar strengthened against the Brazilian real, ending the day at R$5.7895, up 0.31%. This movement reflected the ongoing economic uncertainty and the market’s cautious stance towards emerging currencies.
Investors closely monitored discussions in Brasília regarding upcoming fiscal measures. Finance Minister Fernando Haddad stated that the fiscal impact of the proposed package would be significant.
However, he was unable to confirm whether the announcement would be made this week or the next. Haddad emphasized the importance of aligning various budget items with the overall fiscal framework.
He stressed that this approach would ensure the long-term sustainability of the economic plan. The minister held meetings with President Luiz Inácio Lula da Silva and the President of the Chamber of Deputies, Arthur Lira.
These discussions aimed to finalize details of the fiscal package before its public announcement. In the corporate sector, IRB(Re) shares led the losses on the Ibovespa.
Market Reactions and Sector Highlights
The company reported a 142.8% increase in net profit for the third quarter. However, investors reacted negatively to CEO Marcos Falcão’s statement about dividend payments being more likely in 2026 than in 2025.
Hapvida also experienced a significant drop in share price. Despite reducing its losses compared to the previous year, the healthcare operator faced increased legal challenges.
This development raised concerns among investors about potential future liabilities. On a positive note, Embraer shares performed well.
Analysts from JP Morgan and Citi expressed optimism about the aircraft manufacturer’s prospects, driving up investor interest in the company.
Vale, a major component of the Ibovespa, ended the day relatively unchanged. The mining giant’s performance reflected the weakness in iron ore prices. This trend was partly due to disappointment over China’s latest economic stimulus package.
Petrobras shares saw a slight increase, supported by rising oil prices in the global market. The state-owned oil company’s stock movement aligned with broader energy sector trends.
In the United States, Wall Street experienced a subdued trading day. The S&P 500 closed marginally higher at 5,985.38 points.
The Dow Jones Industrial Average rose slightly to 43,958.19 points, while the Nasdaq Composite fell to 19,230.74 points. US inflation data released on Wednesday showed a 0.2% monthly increase in the Consumer Price Index for October.
This figure aligned with market expectations and reinforced beliefs that the Federal Reserve might consider interest rate cuts in its December meeting.
As Brazil’s financial markets navigate through economic uncertainties, investors remain cautious. They continue to watch for signals from both domestic fiscal policies and global economic trends to inform their investment decisions.