Dollar closes falling and Ibovespa rises, awaiting inflation data; Americanas falls almost 2% after billion-dollar losses

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The North American currency fell 0.23%, quoted at R$4.9810. The main stock index on the Brazilian stock exchange ended up 0.15%, at 129,609 points. Dollar operates lower Karolina Grabowska The dollar closed lower this Monday (26), in another day of weak agenda in Brazil and the world. In this session, investors continued to wait for some important announcements that should take place throughout the week. The highlight is inflation data from the United States, with the Broad National Consumer Price Index 15 (IPCA-15, the preview of official Brazilian inflation) and Brazil’s Gross Domestic Product (GDP). Corporate news was also on the radar, after Americanas released its results for the first nine months of 2023 this morning. Between January and September, the company had a loss of R$4.6 billion. Ibovespa, the main stock index of B3, the Brazilian stock exchange, ended on a high. See below for a summary of the markets. Dollar At the end of the session, the dollar fell 0.23%, quoted at R$4.9810. See more quotes. With the result, it accumulated: drop of 0.23% in the week; increase of 0.89% in the month; increase of 2.65% in the year. Last Friday (23), the North American currency rose 0.80%, quoted at R$4.9924. Ibovespa Ibovespa ended up 0.15%, at 129,609 points. Americanas shares, in turn, were unable to sustain the positive signal in the first half of the trading session and fell almost 2%. The company reported a loss of more than R$4 billion in the first nine months of 2023. On Friday, the index closed with a drop of 0.63%, at 129,419 points. With the result, it accumulated: increase of 0.54% in the week; increase of 1.30% in the month; decline of 3.55% in the year. READ ALSO CASH OR CARD? What is the best way to take dollars when traveling? DOLLAR: When is the best time to buy the currency? Understand what makes the dollar rise or fall What is moving the markets? The market continues to wait for some important economic data that will be released throughout the week. The main thing is the core PCE prices for January, in the United States, which should be released on Thursday (29). This is the Federal Reserve’s (Fed, the American central bank) favorite inflation indicator and serves as a basis for understanding what the institution’s next steps may be. If inflation is controlled and within expectations, the market tends to interpret it as positive news, which could lead the Fed to consider cutting American interest rates in the coming months. If the PCE result comes in above projections and shows an acceleration in prices, investors understand that the Fed may take longer to start its interest rate cut cycle. There is a lot of expectation about when the American Central Bank will reduce its rates, currently between 5.25% and 5.50% per year. Lower interest rates help to move the economy, in addition to favoring risky assets, such as stock markets and currencies from emerging countries. Still this week, the market awaits the United States’ Gross Domestic Product (GDP) figures for the fourth quarter of last year and other data on economic activity, such as the consumer confidence index. In Brazil, the big agenda is the meeting of Finance ministers at the G20 meeting on Wednesday and Thursday, in São Paulo. The Group of 20 is an organization that brings together economic ministers and central bank presidents from 19 countries and two regional bodies, the European Union and the African Union. Together, the G20 nations represent about 85% of the entire global economy, more than 75% of world trade and about two-thirds of the world’s population. The G20 has annual rotating presidencies. Brazil is the current president of the group, took office on December 1, 2023 and remains in charge until November 30, 2024. During this period, the country must organize 100 official meetings. Data from the country’s official inflation preview (IPCA-15) and Brazilian GDP should also be on the radar throughout this week. On the corporate side, highlight goes to Americanas, which released its financial results for the first nine months of 2023, after a series of delays and in the midst of the judicial recovery process. The company had a loss of R$4.6 billion in the period and experts highlight that debt remains high. Despite this, the result represents a reduction in losses compared to the same period last year, of R$6 billion. Nilson Marcelo, quantitative analyst at CM Capital, points out that the balance sheet was more positive than the last ones, “but not enough for investors to start looking at the company for the long term”. “Unfortunately, the debt remains very high and the main shareholders have not yet made the necessary contributions to the company’s recovery. It is still too early to say anything but (Americanas) closing its doors does not seem likely to me”, comments the analyst.

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