Ibovespa follows the market correction and closes with a moderate rise; Investor stays alert with omicron . variable

Sao Paul – The Ibovespa It partially recovered from last Friday’s losses as investors await new information about the omicron variant of the Covid-19 vector virus. The Brazilian stock market has been in tune with the market abroad, where indicators have also advanced, although there are many doubts about the new breed. Many countries are partially closing their borders while it is not clear whether the mutation is resistant to existing vaccines.

With that, today’s movement was seen as more of an adjustment than a convenience in itself. “The fear of the new alternative has not passed. It is a natural correction in the market, which contains a lot of this: you had a strong drop on Friday, so it is a correction for this downward movement,” explains Juan Espinel, investment specialist at Ivest Consultoria.

The biggest concern now is a new possibility closures, which can be approved if current vaccines are ineffective against the new strain. “Health protocols are already ready, and what we need to understand is how new closures It will cost central banks. Will they be able to maintain current levels of stimulus? Will they be able to keep the economy hot and deal with inflation? ‘ asks Espinhell.

Meanwhile, Brazil’s inflation expectations keep getting worse. Financial market economists have once again raised their expectations for the expanded national consumer price index (IPCA) for 2021, according to the central bank’s focus report. From 10.12% last week, the median forecast for inflation for this year is now at 10.15%. For 2022, forecasts increased from 4.96% to 5%.

“As expected, the median forecast of economists in the FOCUS IPCA 2022 report hit their maximum target of 5%. It was nothing new, after all there is market consensus that we will have spreading pressure on the index next year,” he said. says Andre Perfetto, chief economist at Necton.

The vote on the PEC dos Precatórios is scheduled for tomorrow, 9 a.m., at the Senate Committee on Constitution and Justice (CCJ). According to the Speaker of the Chamber of Deputies, Rodrigo Pacheco, once approved, it will “immediately” move to the plenary for a vote on Thursday. The date, however, represents a delay in the initial expectations of the government of President Jair Bolsonaro, which was due to decide the vote in the Senate tomorrow. In addition, the Executive is still seeking votes to standardize the necessary result, which is 49 votes in favor in the plenary.

In Brasilia, Reuters has found that the government is not ruling out the possibility of turning to the war budget again in order to make the Auxílio Brasil payments, an alternative to the Bolsa Família, viable.

The Ibovespa index closed up 0.58% at 102,817 points. The trading volume on the day amounted to 24.4 billion Brazilian riyals. Ibovespa’s December 2021 futures are up 0.89% in North America after market to 103,250 points.

The commercial dollar closed 0.25% higher at R$5.610 for selling and R$5.609 for buying, Highest level in a month. Negative economic data in the Eurozone affected the exchange rate, in addition to restrictions on intra-state trading and travelers, due to the omicron variable of the Corona virus. The maximum was R$5,640 and the minimum was R$5,580.

Dollar futures due in December 2021 fell 0.13% to R$5.607 in late trading today.

In the extended session of the futures market, the DI index for January 2023 rose by 2 basis points to 11.88%; January 2025 DI drops ten basis points to 11.59%; The DI for January 2027 was down 11 basis points to 11.55%.

In the United States, President Joe Biden has stated that there is no new need closures To respond to the progress of the omicron variable. This gave an additional boost to the stock exchanges, which were rising early and thus managed to recoup part of last Friday’s losses. The Dow closed down 0.68% to 35,135 points. The S&P rose 1.32% to 4,655 points. The Nasdaq Technology Exchange rose 1.88% to 15,782 points.

In Europe, today also saw a partial recovery, with stock markets closing higher. The Stoxx 600 Index, which aggregates stocks of companies in major sectors in 17 European countries, closed up 0.69%.

the part of goods It also rose strongly today, but pared gains throughout the session and gone far from fully recovering from last week’s stumble. West Texas Intermediate crude for January 2022 closed up 3.23% at $70.35. The benchmark for Brent for February delivery went in the opposite direction and lost 2.85% at $73.63 a barrel.

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