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Ibovespa (IBOV) rises with the help of PETR4 and VALE3 this Wednesday, but is not saved in November

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Ibovespa ends a month marked by uncertainty about the ministerial composition of the next government and the Transition PEC with losses (Image: REUTERS/Paulo Whitaker)

O Ibovespa (IBOV) followed the positive trend of the last trading session and closed this Wednesday (30) on a high. The advance of the day eased the pressure, but did not prevent the index from accumulating losses in November.

The reference index of the Brazilian Stock Exchange advanced 1.42% today, to 112,486.01 points. The great appreciation in the markets in Wall Street and the strength of commodities supported the domestic market.

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Despite this, the Ibovespa ends the month marked by uncertainties about the ministerial composition of the next government and the Transition PEC with losses of 3.06%.

This Wednesday, the shares of the Petrobras 🇧🇷PETR3🇧🇷PETR4) advanced 3.44% (ordinary) and 5.04% (preferred) with the rise in oil prices on international markets. Already OK 🇧🇷VOUCH3) rose 1.5%, despite the iron ore correction in China🇧🇷

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Investors await developments on the Transition PEC, in progress in the Senate. There is an expectation that the amount that breaches the spending ceiling will be lower than the currently proposed.

The text filed in the Senate removes spending on Bolsa Família, stipulated at R$ 175 billion, from the ceiling. The text predicts still that 6.5% of the excess revenuegivestion from the government can be applied to public investments that are not accounted for in the fiscal norm as of next year. This amount would be R$ 23 billion.

Data on the Brazilian Gross Domestic Product (GDP) will be released tomorrow. Idean Alves, partner and head of the operations desk at Ação Brasil, recalls that the third quarter is historically weaker than the others.

“It’s like a turning point towards the end of the year, with companies getting organized for the final stretch, which generates great expectations. A good part of this expectation was not confirmed in the third quarter and is even more disappointing in the fourth quarter due to trade data”, he comments.

In Alves’ assessment, the third quarter will be lower than expected and “indicate the winter to come” in the Brazilian economy.

Abroad, the president of the Federal Reserve (Fed)🇧🇷 Jerome Powellsaid, at an event by the research group Brookings Institution, that the central bank of the United States may moderate the pace of monetary tightening as of December.

Powell reinforced that inflation remains high and that the Fed must act to combat rising prices. However, he signaled that the time to moderate the pace of rate hikes could come as early as December.

The prospect that China should ease its policy on Covid Zerowhich has prevented the country’s economy from recovering.

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Source: Moneytimes

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