SÃO PAULO, SP (FOLHAPRESS)
The dollar was falling this Tuesday morning (26) after the release of the IPCA-15 (Broad Consumer Price Index – 15) for September, which came in slightly below what the market expected.
Earlier, the American currency had started the day on a high, following the rise in American Treasury bonds in an unstable session. Fears about a new interest rate hike in the US remain on the market’s radar and give strength to the dollar this week.
In Brazil, investors also responded to the publication of the Copom minutes.
At 9:47 am, the dollar had a slight drop of 0.20%, quoted at R$4.955.
The IPCA-15, released by IBGE (Brazilian Institute of Geography and Statistics), showed an acceleration in inflation to 0.35% in September, after rising 0.28% in August. The index was mainly pressured by gasoline.
Despite the increase, the result was slightly below market estimates: analysts consulted by Bloomberg projected an increase of 0.37%.
With the new result, the IPCA-15 reached 5% in the 12-month period. In this period, the increase was 4.24% until August.
The Copom minutes once again mentioned the fiscal targets proposed by the government, stating that distrust over the fulfillment of fiscal objectives has increased concerns about inflation.
“The Committee assesses that part of the uncertainty observed in the markets, with an increase in risk premiums and implicit inflation, was previously more related to the final design of the fiscal framework and currently refers more to the execution of revenue and expenditure measures compatible with the framework and achieving fiscal targets”, he said.
The announcement comes after the committee reduced the Selic (base interest rate) by 0.50 percentage points last week, and signaled that the next cuts will be of the same magnitude. The indication frustrated the market, which expected a possible acceleration in the rate of interest rate declines in Brazil.
On Monday (25), the Brazilian Stock Exchange recorded a slight drop and closed below 116 thousand points while the dollar rose after negative news about the Chinese economy, which reignited fears about the country’s slowdown.
As a backdrop, the risk rating agency S&P reduced its Chinese GDP (Gross Domestic Product) growth forecast for 2023 and 2024, considering the weakness of the country’s real estate sector.
Furthermore, developer Evergrande, one of the largest in China, said it was unable to issue new debt securities.
As a result, the Ibovespa fell 0.07%, remaining practically stable at 115,924 points, while the dollar rose 0.68%, ending the day at R$4.965.
Ibovespa operated lower throughout the session, driven by a strong drop of 2.05% in Vale. The mining company is the largest company on the Brazilian Stock Exchange and is most closely linked to movements in the Chinese economy, a large importer of iron ore.
The sectors most sensitive to Brazilian interest rates were those that fell the most.
In retail, Grupo Casas Bahia fell 13.24% and led the session’s losses, while Magazine Luiza fell 4.01%. The index that brings together companies in the sector fell 0.31%.
“There is a lack of convinced buyers for both companies. They are companies that are having difficulty delivering results and have shown losses in recent quarters. The lack of confidence brings down the shares, which have been on a downward trend for a few months”, says Leandro Petrokas, director of research and partner at Quantzed.
Airlines also followed a downward trend, impacted by the rise in the dollar and the recent rise in oil prices abroad. Gol fell 3.57%, also pressured by a Citi report that reiterated “high risk” for its shares, and Azul fell 2.84%.
MRV, in the construction sector, registered a drop of 4.12%, completing the list of biggest falls of the session.
On the positive side, Petrobras rose 0.64% and mitigated the losses of the Ibovespa, supported precisely by the rise in oil. Weg, which was among the most traded in the session, also gave impetus to the index with an increase of 4.45% after announcing that it had closed an agreement to buy assets from the American Regal Rexnord.
The post Dollar is falling after the release of IPCA-15 in September appeared first in Jornal de Brasília.
Source link
THE NAIS IS OFFICIAL EDITOR ON NAIS NEWS