Ibovespa operates at a slight high this Friday, after a sharp drop on the eve

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The main index of the Brazilian stock market fell 2.29%, to 97,926 points. B3 headquarters Amanda Perobelli/Reuters The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates at a slight increase this Friday (24). On the eve, it closed sharply in this one, with investors following the new episodes of tension between the federal government and the Central Bank. At 10:06 am, the index rose 0.15%, to 98,120 points. See more quotes. On Thursday, the index fell 2.29% to 97,926 points. With the result, it started to accumulate losses of 6.68% in the month and 10.76% in the year. What is messing with the markets? The economic scenario is turbulent in several countries around the world. Abroad is in a climate of risk aversion, with bank crises in the United States and Europe. This morning, for example, shares of the German bank Deutsche Bank fell more than 10%. The week was also marked by the release of interest rates both in the US and in Brazil. Both results came in line with market expectations: In the US, the Fed raised interest rates by 0.25 percentage points to a range of 4.75% to 5%. In Brazil, the Monetary Policy Committee (Copom) decided to maintain the Selic rate at 13.75% per year, also without surprise. In a note issued after the meeting, the Committee stated that, although the increase in fuel prices has reduced the uncertainty of short-term fiscal results, some risk factors for the inflationary scenario still remain. They are: greater persistence of global inflationary pressures, uncertainty about the fiscal framework and its impacts on expectations for the trajectory of public debt, and a greater, or more lasting, discouragement of inflation expectations for longer terms. The Minister of Finance, Fernando Haddad (PT), reacted: “I considered the statement worrying, very worrying, because today we released a bimonthly report showing that our projections for January are being confirmed on the public accounts”, said the minister. On the Ibovespa, the main impact was on the stock exchange’s most cyclical shares (which follow economic cycles). When interest rates rise, companies that are publicly traded and need a lot of cash flow are usually harmed, clarifies economist Bruno Mori, founding partner of consultancy Sarfin. “The cost of capital is higher and squeezes profit margins. Thus, the market prices a lower future profitability. The account is made from a probable distribution of future dividends”, he says. “So, instead of buying stocks with expectations of receiving good dividends, what the market generally does is sell stocks and buy fixed-income securities.” Initial plugin text

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