O Ibovespa (IBOV) retreated this Tuesday (7), clashing with the positive feeling that prevailed in Wall Street.
The reference index of the Brazilian Stock Exchange fell by 0.82%, to 107,829.73 points. The day was full in the economic area, with the release of the minutes of the last meeting of the Monetary Policy Committee (Copom) of central bank in Brazil and the speech of the president of the Federal Reserve (Fed), Jerome Powellat an event at the Economic Club of Washington.
The Copom minutes maintained the firm tone of the communiqué released last Wednesday (1st), when the monetary authorities decided to maintain the Selic, the basic interest rate in Brazil, at 13.75%.
The minutes released today mention the concern with the fiscal risk and the worsening in the expectations with the inflation. According to the document, the deterioration in prospects may have occurred due to several factors, such as “a possible perception of Central Bank leniency with the targets stipulated by the National Monetary Council, an expansionist fiscal policy, which puts pressure on aggregate demand over the horizon of projections , or the possibility of changing the inflation targets defined herein”.
Still, some committee members believe that the economic package presented by the Ministry of Finance can mitigate fiscal risk.
This Tuesday, the minister of the portfolio, Fernando Haddadsaid that the minutes were better and “more friendly” than last week’s statement, making important points about the ministry’s work.
Us U.Sthe president of the country’s central bank indicated that he is optimistic about the disinflation process, despite the fact that the latest employment data have come in well above expectations, pointing to the creation of more than 500,000 jobs in January.
According to Powell, disinflation is in the early stages and the Fed believes that significant declines in inflation could occur in 2023.
However, new interest rate hikes have not been ruled out, if data, mainly inflation, remain high.
ups and downs
The shares of Petrobras (PETR3;PETR4) retreated this Tuesday, against the grain of the oil and gas sector, which took advantage of the movement in oil prices in international markets.
The shares of the state-owned company fell 0.52% (ordinary) and 0.62% (preferred). Marcus Labarthe, founding partner of GT Capital, says that the market did not like a speech by the president Luiz Inacio Lula da Silva on the privatization of Eletrobras (ELET3).
According to Labarthe, Lula’s criticism of the privatization of electricity shows government interference in state-owned companies.
Today, Lula classified the Eletrobras privatization process as an “almost banditry” by preventing the government from having a majority in the company again and said that the Attorney General’s Office (AGU) will ask for a review of the terms of the contract.
Eletrobras shares ended the trading session with losses of 3.51%.
Still, investors continue to monitor the delicate relationship between Lula and the BC. The President of the Republic criticized the handling of interest rates in the country by the monetary authority. The petista also showed dissatisfaction with the current president of BC, Roberto Campos Neto.
Labarthe says that criticism of the BC’s autonomy harms Brazil’s image and increases tensions.
“Political interference in economic matters is not welcomed by the market”, reinforces the expert.
A OK (VOUCH3) interrupted the sequence of declines that had been showing in the last seven trading sessions and closed up 0.66%, even with the markets reassessing downwards the prospects with the recovery of the economy in China.
High highlight, the embraer (EMBR3) rose 3.1%. Already the papers of Locaweb (LWSA3) melted 6.9%.
Banks had a weak day. Itau (ITUB4) retreated 2.31% before the release of the results for the fourth quarter of 2022, expected to be released today.
Outside the Ibovespa, the Light (LIFT3) melted 14.19% amid the possibility of a request for judicial recovery being announced in the coming days.
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