Ibovespa opens lower, following abroad

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Yesterday, the main index of the Brazilian stock market retreated 1.23%, to 118,934 points. Ibovespa Freepik The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened slightly lower this Friday (23), accompanying the exterior in a day of bad mood in the global markets. After new economic data in Europe and tougher monetary policy decisions around the world, fears are growing that the world will soon enter an economic recession. Meanwhile, in Brazil, the market continues to echo the tone of the latest statement by the Monetary Policy Committee (Copom) of the Central Bank of Brazil (BC), which maintained interest rates at 13.75% per annum for the seventh consecutive meeting, in addition to follow the progress of the tax reform in the National Congress. At 10:15 am, the index fell 0.14%, at 118,768 points. See more quotes. The previous day, the Ibovespa closed down 1.23%, at 118,934 points. As a result, the index began to accumulate increases of: 0.15% in the week; 9.78% in the month; 8.38% in the year. What is messing with the markets? The day is marked by strong risk aversion at the global level, with investors reflecting new negative economic indicators, which increase the prospect that a recession may be close. In Europe, some countries released their Purchasing Managers’ Indices (PMI) for the service sector, which work as a kind of thermometer over sectors of the economy to guide the market. In the euro zone, the PMI fell to a five-month low in June, at 50.3, below market expectations. The numbers also came in below projections in France and the United Kingdom, where the indicators retreated to 47.3 and 52.8, respectively. According to analysts at BTG Pactual, these numbers “may increase the fear of global recession, which already surrounded the market yesterday with monetary tightening by several central banks around the world, such as the Bank of England (BoE), which raised interest rates to 5 %”, at the highest level since 2008. In Brazil, the last meeting of the Monetary Policy Committee (Copom) of the Central Bank of Brazil (BC) continues to reverberate, which maintained the Selic, basic interest rate, at 13.75% a year, but did not bring signs about when there will be a cut in interest rates. This statement frustrated market expectations, as it was widely expected that a downward cycle in the Selic Rate would already begin at the next meeting of the body. Now, investors await the release of the Copom minutes, next Tuesday (27). In the political scenario, the text of the tax reform was presented to the Chamber of Deputies on Thursday night (22) and is expected to be voted on in early July. The main points presented were: a dual value-added tax (VAT), that is, a tax for the federal government and another for states and municipalities, which replaces five other taxes; lower rates for the areas of health, education, public transport and the basic food basket, among others; the text makes room for granting, in the future, the so-called “cashback”, that is, a tax refund, for the selected public; an amount is also being proposed for the regional development fund from 2029, which will reach R$ 40 billion from 2033, to be paid by the Union to states and municipalities, and another R$ 160 billion in a compensation fund until 2032 – starting in 2025.

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