Ibovespa opens higher, after positive results from Itaú

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In the last session, the main index of the Brazilian stock market rose 2.91%, to 105,148 points. The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened higher this Monday (8), driven by the appreciation of oil and iron ore abroad and with investors reflecting on Itaú’s balance sheet. The bank had a net profit of BRL 8.4 billion in the first quarter of 2023, up 14.6% compared to the same period last year. The result resonated well with investors and favored bank stocks, which are the gateway for foreigners to enter the Brazilian stock market. At 10:06 am, the index was up 0.30% at 105,462. See more quotes. The movement came largely supported by the blue chips (stocks with greater weight in the composition of the Ibovespa). Among the highlights, Vale and Petrobras rose 3.17% and 4.39%, respectively, accompanying the appreciation of commodities abroad. Financial segment papers also rose sharply in the session. Last Friday, the Ibovespa rose 2.91% to 102,174 points. With the result, it started to accumulate: Increase of 0.69% in the week and in the month; Reduction of 4.18% in the year. In the exchange market, the dollar closed down 0.98%, quoted at R$ 4.9431. What is messing with the markets? On a day with an empty agenda in Brazil, the main internal highlight is the Focus Bulletin, which gathers the average expectations of market economists for the country’s main economic indicators. Projections for the Extended Consumer Price Index (IPCA), which represents official inflation, dropped from 6.05% last week to 6.02% this week. Despite the drop, projections continue to indicate inflation well above the Central Bank of Brazil’s (BC) target in 2023. The target for this year is 3.25%, ranging from 1.75% to 4.25%. Last week, the Monetary Policy Committee (Copom) BC maintained the Selic, basic interest rate, at 13.75% per annum, in an attempt to reduce inflationary pressure in the country. Regarding this decision, yesterday, President Luiz Inácio Lula da Silva again criticized BC President Roberto Campos Neto. Lula said that Campos Neto “has no commitment to Brazil”, but rather “to those who like high interest rates”. Abroad, the week begins with expectations for the release of inflation in the United States on Wednesday (10). Also last week, the Federal Reserve (Fed, the American central bank) raised its interest rates by 0.25%, between 5.00% and 5.25% a year, the highest level since 2007. signs that it remains very pressured, this could lead to an expectation of new hikes in interest rates in the country, which favors the dollar against assets considered risky, such as the stock market and the currencies of emerging countries, as is the case with the real. In addition, on Thursday (11), the Bank of England meets to decide on the course of interest rates in the United Kingdom. Initial plugin text

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