Ibovespa opens higher, with improvement in the US debt scenario

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The main index of the Brazilian stock market advanced 1.15%, to 110,054 points. Ibovespa Burak The Weekender/Pexels The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened higher this Friday (26th), with an improvement in the perspectives on the renegotiation of the United States debt and with investors still echoing the measures for the car industry announced by the government yesterday. At 10:24 am, the index rose 1.09%, to 111,255 points. See more quotes. On the eve, the Ibovespa rose 1.15%, to 110,054 points. With the result, the index began to accumulate: Gains of 5.38% in the month and 0.29% in the year. Down 0.62% for the week. What is messing with the markets? The markets woke up with a more positive outlook on the topic that has become a major generator of risk aversion in recent weeks: the renegotiation of the US debt ceiling. According to Reuters news, an American official who preferred not to be identified said that President Joe Biden (Democrat) and Speaker of the House of Representatives Kevin McCarthy (Republican) are closer to reaching an agreement to raise the debt limit. from the government. The spokesperson said that, for now, the main points of the possible agreement are: an increase in funding for discretionary military and veterans spending; maintaining non-defense discretionary spending at current year levels; the final agreement will specify the total amount the government could spend on discretionary programs like housing and education, but it would not break this down into individual categories. According to the news agency, Republicans and Democrats are still separated by around US$ 70 billion – out of a total value that would be well over US$ 1 trillion. In the domestic scenario, investors continue to echo the measures announced by the government this Thursday (25th), to make popular cars cheaper. Among the government’s main proposals are: tax cuts to reduce the final price of a car up to R$ 120,000 by up to 10.79%; adoption of the reference rate (TR) as the interest rate for research and innovation projects; R$ 4 billion in financing in dollars from the National Bank for Economic and Sustainable Development (BNDES), aimed at companies that work with exports. The averages were well-received by the auto industry, but brought back concerns about the country’s fiscal side, analysts say. There are doubts, for example, about where the resources will come from so that the government can compensate for the loss of revenue with the tax cut. In addition, experts indicate that even with the reduction in the final price of cars and the eventual creation of guarantees or a specific line of credit for retailers, the impacts for the final consumer would still be quite limited. (Read the full review). The national market also reflects the release of new economic data. The Construction Confidence Index, measured by FGV-Ibre, dropped by 1.4 points in May, to 94 points, the lowest level since January. Initial plugin text

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