Ibovespa operates high, with Vale, Petrobras and banks

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Yesterday, the main index of the stock exchange fell 0.55%, to 116,171 points. Ibovespa Pexels The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates on a high this Wednesday (16), on a day with a less busy schedule, which leaves the market a little calmer. The highlight of the trading session is the release of the Federal Reserve minutes (Fed, the American central bank), which may bring more signals about interest rates in the United States. At 11:50 am, the index rose 0.97%, to 117,292 points. See more quotes. At the same time, the shares with the most weight in the Ibovespa composition also rose, boosting the stock market’s performance. Vale advanced almost 1%, while Petrobras rose more than 3%. Banks also appreciated, with emphasis on Itaú and Banco do Brasil, both up around 1.50%. The previous day, the Ibovespa closed down 0.55%, at 116,171 points, the 11th consecutive drop. With the result, it started to accumulate: drops of 1.61% in the week and 4.74% in the month; gains of 5.86% in the year. What is messing with the markets? The day is an empty agenda in Brazil, without important economic indicators and with investors monitoring the political scene more, after tension between Finance Minister Fernando Haddad and President of the Chamber of Deputies Arthur Lira. In an interview, Haddad said that the Chamber of Deputies “has very great power and cannot use that power to humiliate the Senate and the Executive”. The minister, however, stated that this was not a criticism of the Chamber’s actions. Even with Haddad’s public clarification, the speech disturbed the climate among parliamentarians and Lira postponed talks about the fiscal framework for next week. Abroad, the trading floor has some important announcements, with emphasis on the minutes of the Fed, which in its last meeting raised interest rates in the United States to a level between 5.25% and 5.50% per year. Higher interest rates there increase the profitability of the country’s government bonds, which are considered the safest in the world. This attracts investors and leads to a migration of dollars to the world’s largest economy, especially at a time of various economic uncertainties around the world. In the euro zone, the Gross Domestic Product (GDP) rose 0.3% in the second quarter compared to the first and 0.6% in the annual comparison, in line with projections. Industrial production was up 0.5% in June, while the market expected a 0.6% drop. On the other hand, the situation in China continues to bring caution to investors, who are fearful of an economic slowdown in the country, which is one of the world’s biggest demanders for various types of products. Companies in the Chinese real estate sector are struggling to pay their debts and one of them, Country Garden, has been trying to extend payment terms. Analysts at S&P Global Ratings say there are risks that the company will not meet its financial obligations and that there will be insolvency. They also point out that this could generate a chain reaction in the rest of the Chinese economy, hitting suppliers and other smaller builders.

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