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The Brazilian stock market, represented by the Ibovespa index, maintained its position above 127,000 points for the fifth consecutive trading session.
This stability comes as investors await fiscal measures and digest the impact of Wall Street’s decline following Federal Reserve Chairman Jerome Powell’s recent remarks.
On Thursday, November 14, 2024, the Ibovespa closed with a slight increase of 0.05%, reaching 127,791.60 points. The index remained virtually unchanged for the week, with a minimal decrease of 0.03%.
Meanwhile, the US dollar ended the day at R$ 5.7881, a marginal decline of 0.02%. Investors in Brazil are closely monitoring economic data and statements from central bank officials.
The Central Bank’s Economic Activity Index (IBC-Br) showed a 0.80% increase in September compared to the previous month. This figure surpassed expectations and contributed to a 1.1% growth in the third quarter.
Brazil’s Economic Landscape
Roberto Campos Neto, President of Brazil’s Central Bank, emphasized the need for fiscal adjustment to achieve sustainably lower interest rates.
He expressed concern about unanchored inflation expectations and noted recent signs of resilience in inflation figures. In the stock market, Americanas shares surged over 170% following the release of its third-quarter results.
The retailer, currently undergoing judicial recovery, reported a net profit of R$ 10.3 billion ($1.81 billion) between July and September. This marks a significant turnaround from the R$ 1.63 billion loss in the same period last year.
C&A shares experienced a sharp decline of more than 13% during the trading session. This drop followed news that the Brenninkmeijer family, which controls the company, sold 13% of their stake for R$ 460 million ($80.7 million).
Among the Ibovespa’s theoretical portfolio, Marfrig led the gains with an increase of over 8%, while MRV&Co saw the largest decline, falling nearly 9%. Vale shares continued their downward trend, influenced by falling iron ore prices in China.
In the United States, investors reacted to new economic data and Powell’s statements. The Producer Price Index (PPI) rose 0.2% in October, in line with expectations.
Powell suggested that the Federal Reserve does not need to rush to lower interest rates, given the solid job market and continued economic growth. As a result, traders reduced their bets on a December interest rate cut by the Fed.
The probability of a 25 basis point reduction to 4.25%-4.50% fell to 62.4%, down from 82.5% the previous day. US stock markets closed lower, with the S&P 500, Dow Jones, and Nasdaq all experiencing declines.
The Brazilian financial market will be closed on Friday, November 15, for the “Proclamation of the Republic” holiday. Trading activities will resume on Monday, November 18.