Ibovespa opens with volatility and oscillates between highs and lows

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Last Friday, the main index of the Brazilian stock market advanced 0.04%, to 118,977 points, ending the week with gains of 0.18%. Ibovespa Pixabay The Ibovespa, the main index of the São Paulo stock exchange, the B3, opened with volatility this Monday (26th), oscillating between highs and lows. On the one hand, the day is marked by the appreciation of oil on international markets, which boosts business in Brazil, as the country has many companies exporting the commodity. On the other hand, fears of a global recession bring about greater risk aversion. At 10:12 am, the index fell 0.17%, at 118,744 points. See more quotes. Last Friday, the Ibovespa closed up 0.04%, at 118,977 points. With the result, the index began to accumulate increases of: 0.18% in the week; 9.82% in the month; 8.42% in the year. What is messing with the markets? The week began with the release of the Boletim Focus, a report by the Central Bank of Brazil (BC) that gathers the estimates of economists in the financial market for the main indicators in the country. In this edition, the projections for the Extended Consumer Price Index (IPCA) of 2023 fell for the sixth consecutive week, to 5.06%. For next year, expectations were also reduced and now point to an inflation of 3.98%. As for GDP, the prospects have improved for the seventh week. Economists expect Brazil to grow 2.18% this year and 1.22% in 2024. The projections for the Selic, basic interest rate, remained the same, however. Despite the statement from the last meeting of the Monetary Policy Committee (Copom) having a harsher tone than expected, with no signs of interest rate cuts, the market forecasts a Selic rate of 12.25% per annum until December and 9 .50% per year at the end of next year. Still on interest rates, investors await the release of the minutes of the Copom meeting, which should bring more details on the direction of Brazilian monetary policy in the coming months. On the international scene, the market reflects weaker data from the last few weeks, which indicate that “inflation still worries Central Banks around the world, and that the global economy may suffer more than expected from now on”, according to Thiago Godoy , financial educator at Rico, This data promotes greater risk aversion in international investors, while waiting for new economic indicators, with emphasis on: PCE Price Index in the United States, the favorite indicator of the Federal Reserve (Fed, the American central bank) ; University of Mishigan Consumer Sentiment Index; employment and unemployment data in the euro zone; Industrial Purchasing Manager Index (PMI), which shows a picture of how heated the market is in China.

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