Ibovespa operates high, pulled by Petrobras and domestic consumption companies

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On the eve, the main index of the Brazilian stock market advanced 1.70%, to 114,610 points. Ibovespa Freepik The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates with a significant rise this Wednesday (7), driven by Petrobras and by domestic consumption companies, after the release of the May inflation, which came well below market expectations. The Extended Consumer Price Index (IPCA) decelerated to 0.23% in the last month, against projections for an increase of 0.33%. A more controlled inflation could mean a tendency to reduce Selic, basic interest rate, soon, which favors consumption in Brazil. At 10:30 am, the index rose 0.96%, to 115,709 points. See more quotes. In the same period, Petrobras shares advanced 1.43%, accompanying the appreciation of oil abroad. Other important highs come from consumer companies, such as Magazine Luiza, Gol, Carrefour and Petz. On the eve, the Ibovespa rose 1.70% and reached 114,610 points, the highest level of the year. With the result, the index started to accumulate gains of: 4.03% in the month; 2.70% in the year. What is messing with the markets? The big highlight of the day is Brazilian inflation, which showed a sharp deceleration in May and came in below expectations. However, the day should have reduced business volume, due to the shorter week – tomorrow is a Corpus Christi holiday and the markets are not open. Still in the domestic scenario, there is another agenda on the radar. “In the political scenario, a new topic appears on investors’ radar: the course of the tax reform. Yesterday afternoon, the project’s rapporteur presented the preliminary report on the Constitutional Amendment Proposal (PEC). the discussion of the text in the Chamber before the parliamentary recess, on July 17, prioritizing the theme”, comments Antonio Sanches, an analyst at Rico Investimentos. The working group of the Chamber of Deputies that discusses the reform, proposed the adoption of a dual VAT, a selective tax for products harmful to health, “cashback” for low-income families, in addition to differentiated rates for areas such as health and education. READ MORE Understand the points presented in the Tax Reform proposal Tax reform keeps Brazil among the countries with the highest collection weight of consumption taxes In the external scenario, the day has an empty agenda in the United States and investors are beginning to speculate about what the decision will be from the Federal Reserve (Fed, the US central bank) next week. Currently, interest rates in the country are between 5.00% and 5.25% per year, the highest level in 16 years. High interest rates in the country increase yields on government bonds, considered the safest in the world, which leads to a migration of investors, who withdraw their resources from risky assets, such as the stock market. In addition, emphasis on economic data from China, which came in worse than expected. Exports in the Asian country fell 7.5% in May, below expectations for a 1.0% drop. Imports, however, had a less accentuated drop, of 4.5%, while the market projected 8.1%. Initial plugin text

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