Ibovespa opens higher, driven by Vale and other iron ore exporters

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Yesterday, the main index of the Brazilian stock exchange advanced 1.10%, to 118,404 points. Ibovespa Pixabay The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened higher, on a day of greater volatility in global markets, driven by the appreciation of Vale and other companies linked to iron ore, which rise in line with the appreciation of the commodity abroad. Investors reverberate economic data from Brazil and the United States, while the political scenario is also on the radar, in anticipation of the text of the 2024 Budget. At 10:20 am, the index rose 0.19%, to 118,631 points. See more quotes. At the same time, Vale’s shares advanced almost 1%, while CSN’s and CSN Mineradora’s shares were up 2.75% and 1.20%, respectively. On the previous day, the Ibovespa advanced 1.10%, to 118,804 points. With the result, the index started to accumulate: high of 2.22% in the week; drop of 2.90 in the month; and gain of 7.90% in the year. What is messing with the markets? What is messing with the markets? The day is one of volatility in the global markets, in a natural correction movement of the most expressive highs of yesterday, when the employment data in the United States positively surprised the specialists. Job creation was lower than expected. The cooling of the US labor market means an increase in the perception that the Federal Reserve (Fed, the country’s Central Bank) may pause the process of raising interest rates – since, with a weaker labor market, there are fewer money in the hands of the population and the impact on inflation tends to decrease. In Brazil, attention is focused on the political scene, awaiting the submission of the 2024 Budget by the federal government to the National Congress. The document needs to be delivered by August 31 and the market is waiting for demonstrations of how the government will increase federal revenue. The Minister of Finance, Fernando Haddad, claims that the budget is balanced, but other ministers defend a change in the target, bringing the public deficit to up to 0.75 of the Gross Domestic Product (GDP), according to information from the Valor Econômico newspaper. On the economic agenda, highlight for data from Caged, from the Ministry of Labor and Employment, which showed that the Brazilian economy generated 142.7 thousand formal jobs in July this year, below market estimates. In addition, the Getulio Vargas Foundation released the IGP-M for August, which is known as rent inflation. In the month, the indicator retreated 0.14%, against a fall of 0.72% in July.

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