Ibovespa operates unstable this Monday, with the cut in oil production in focus

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On Friday, the main index of the Brazilian stock market fell 1.77%, to 101,882 points. B3 headquarters Amanda Perobelli/Reuters The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates sideways this Monday (3), with the cut in oil production in OPEC+ countries in focus. At 10:10 am, the index fell 0.01%, to 101,871 points. See more quotes. On Friday, the index fell by 1.77%, to 101,882 points. With the result, the Ibovespa ended the week with an accumulated increase of 3.09%. In the month and in the year, however, it still has losses of 2.91% and 7.16%, respectively. Felipe Salto analyzes growth prospects for the Brazilian economy What is messing with the markets? The main surprise of the day in the markets comes from oil prices, which operated at a sharp rise this Monday, after important countries in the market, such as Saudi Arabia, Iraq and Russia, announced a cut in production as a “precautionary measure” after the recent drop in stock prices. The cut comes after crude oil prices fell to $70 a barrel, their lowest level in 15 months, on demand concerns. Experts point out that the measure aims to guarantee price stability and prevent a possible slowdown in the growth of global demand. In the morning, the price of WTI oil is up 5.46% to US$79.78, while the value of Brent is up 5.56% to US$84.33. In the first hours of negotiations, the two indices reached a high of almost 8%. The shares of the main oil companies in the world rise on Monday. The announcement sparks fresh fears about persistent inflation and further increases pressure on central banks to continue raising interest rates. Investors are now focusing on monetary policies with a new complication. Around here, the reduction in the oil supply in the international market could impact fuel prices in Brazil. According to a report on Friday by the Brazilian Association of Fuel Importers (Abicom), Brazilian gasoline is being sold for a value 2% below the international market. In other words, there is pressure on the horizon to keep up with international prices. In addition, analysts continue to digest the open details of the Brazilian fiscal framework. In the calculations of economists, it would be necessary to increase revenue between R$ 100 billion and R$ 150 billion to make the fiscal framework, with the proposed primary result targets, credible and feasible. The Ministry of Finance raised the possibility of taxing exclusive funds and electronic betting to increase revenue. This Monday’s Focus bulletin shows that financial market economists raised this year’s inflation estimate from 5.93% to 5.96%. For 2024, the financial market’s inflation projection remained at 4.13% last week. For Gross Domestic Product (GDP) growth in 2023, financial market expectations continued at 0.9% in the last week. As for 2024, the growth forecast increased from 1.40% to 1.48%. The focus this week will be on US activity data and Friday’s employment report, even though many markets are closed on the day for the Good Friday holiday. Initial plugin text

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