Ibovespa opens higher, following a positive outlook

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On Friday, the main index of the Brazilian stock market advanced 1.80%, to 112,558 points, the highest level since February. Ibovespa operates high this Monday. Pixabay The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened higher this Monday (5th), following the good mood of investors abroad, in a shorter week for the Brazilian market, due to of the Corpus Christi holiday. At 10:10 am, the index rose 0.31%, to 112,905 points. See more quotes. Last Friday (2), the Ibovespa rose 1.80% and reached 112,558 points, the highest level since February. With the result, the index rose 1.49% in the week and started to accumulate gains of: 3.90% in the month; 2.57% in the year. In the foreign exchange market, the dollar closed again below R$ 5 this Friday (2) and ended the week with losses of 0.70%. What is messing with the markets? The week is weak both here and in the international markets, since many important indicators are not being released in the coming days. However, the stock markets dawned with a positive tone at the global level, with investors still reflecting the employment data from the United States, released last Friday. The numbers showed that the labor market remains resilient in the country, even with high inflation and high interest rates, which pleased the market. Furthermore, in China, the purchasing manager index (PMI) for services, which shows how heated the economy is in that sector, rose from 56.4 points in April to 57.1 points in May. These numbers coming from the Asian country bring hope that the second largest economy in the world may once again go through a period of greater acceleration in activity, which would boost the demand for several products, mainly iron ore – since, over there, the real estate sector (one of the most in need of the commodity) is strong. On the domestic front, the week began with the release of the Focus Bulletin internally. The report, which gathers the median projections of economists consulted by the BC for the main economic indicators in Brazil, pointed to the third consecutive drop in expectations for inflation this year. Projections for the Extended Consumer Price Index (IPCA), which reflects the country’s official inflation, dropped from 5.71% last week to 5.69% this week. Even with the reduction, if the prospects materialize, the IPCA will end another year above the Central Bank’s target, which is 3.25% for 2023. The Focus Bulletin released this Monday also brought an increase in expectations for the Gross Domestic Product (GDP) this year, going from growth of 1.26% to 1.68%, after the result of the first quarter surprised with a rise of 1.9% driven by agribusiness. For next year though. there was a drop in the projection, which fell from a high of 1.30% to 1.28%. UNDERSTAND: Why families are spending less and how this impacts Brazil’s GDP The most important release this week, however, will take place on Wednesday (7), when the Brazilian Institute of Geography and Statistics (IBGE) should release the IPCA in May. Market projections for inflation over the last month are for an increase of 0.54%, according to Investing. The result is important for the Central Bank’s Monetary Policy Committee (Copom) to determine its next steps in relation to the Selic rate. Initial plugin text

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