Ibovespa operates on the rise, with IPCA-15 below expectations and US data on the radar

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On the eve, the main index of the Brazilian stock market retreated 0.70%, to 103,220 points. General view of the panels of the São Paulo Stock Exchange Cris Faga/Fox Press Photo/Estadão Content The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates on a high this Wednesday (26), with an eye on the data from the previous inflation in Brazil, economic data abroad and the creation of the Joint Parliamentary Commission of Inquiry (CPMI) of the Coup Acts. At 10:10 am, the Ibovespa rose 0.30%, to 103,529 points. See more quotes. On the eve, the index fell by 0.70%, to 103,220 points. With the result, the Ibovespa accumulated the following results: In the week, the stock market has retreated by 1.10%; In the month, the Ibovespa has gains of 1.31%; In the year, however, it accumulates losses of 5.94%. ‘The cost of not fighting inflation is much higher’, says Roberto Campos Neto What is messing with the markets? The main national indicator of the day, the Extended National Consumer Price Index 15 (IPCA-15) — considered the preview of the country’s official inflation — stood at 0.57% in April, according to the Brazilian Institute of Geography and Statistics (IBGE) . With the results, the IPCA-15 accumulated 4.16% in the 12-month window. It is the first time that the indicator has been below 5% since February 2021. It is also a reduction compared to the 5.36% recorded last month. The numbers were slightly below market expectations. In a Reuters poll, increases of 0.61% in the month and 4.20% in 12 months were expected. In April, the annual result entered the range of the country’s inflation targets. The target is 3.25%, with a tolerance of 1.5 percentage points up or down. The index is one of the parameters used by the Central Bank (BC) to define the Selic, the country’s basic interest rate. But the expectation of economists is a resumption of inflation in the second half. According to this week’s Focus bulletin, the inflation estimate for 2023 is 6.04%, above the target ceiling. The market is also watching the unfolding of the possible installation of the mixed CPI of coup attacks that could happen as early as this Wednesday (26). Agents fear that the commission could paralyze discussions on the economic agenda, such as the processing of the fiscal framework. According to Valdo Cruz’s blog, a retreat by the opposition is on the table, after ex-president Jair Bolsonaro (PL) began to fear becoming the main target of the CPMI. He would even like to appoint two sons to join the commission: Deputy Eduardo Bolsonaro (PL-SP) and Senator Flávio Bolsonaro (PL-RJ). The blog also says that a wing of the opposition already regrets the future creation of the CPMI and does not rule out the possibility of giving up the commission, if the Lula government has full control of the work, with the appointment of a president and rapporteur aligned with the Palácio do Highland. Abroad, moods are mixed awaiting the US interest rate decision, with an eye on economic data for the week. “Yesterday, First Republic Bank plunged 49% after the result on Monday (24). Deposits at the US regional bank fell more than 40% in the first three months of the year, triggered by the recent banking crisis. FRB reignited concerns for the sector as a whole and pressured other bank stocks throughout the day as well,” says an XP report. Initial plugin text

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