Ibovespa operates unstable this Wednesday

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On the eve, the main index of the stock exchange retreated 0.32%, to 117,841 points. Ibovespa operates in low, pulled by the exterior. Freepik The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates unstable this Wednesday (19), with benign inflation results in Europe and awaiting the decision of interest rates in China. At 10 am, the index retreated 0.09%, to 117,738 points. See more quotes. The previous day, the Ibovespa closed down 0.32%, at 117,841 points. With the result, the index began to accumulate: increases of 0.11% in the week and 7.39% in the year; drop of 0.21% in the month. What is messing with the markets? The main highlight of the morning is inflation in the UK, which fell more than expected in June on an annual basis and reached the weakest level in more than a year, at 7.9%. The data relieves some of the pressure on the Bank of England to continue raising the country’s interest rates. The pound sterling weakened and investors reduced their bets on future increases in borrowing costs as consumer price inflation hit the lowest level since March 2022, although it remained above rates seen in other large and wealthy economies. Economists polled by Reuters had forecast a smaller slowdown to 8.2% in the 12 months to June from 8.7% in May. The central bank said in May it expected June inflation to fall to 7.9%, moving away from October’s 41-year peak of 11.1% but still well above its 2% target. “The UK still has one of the highest inflation rates of any advanced economy, but after today it just looks bad rather than a goner,” said James Smith, head of research at the Resolution Foundation. Markets now assess a 0.25 percentage point rise in interest rates on Aug. 3 as more likely than the 0.5 point rise that was priced in on Tuesday. Core inflation — which excludes food, energy, alcohol and tobacco prices and which the Bank of England uses to measure underlying price pressures — also fell, coming in at 6.9%, compared with a three-decade high of 7.1% in May. Economists polled by Reuters had expected that measure to hold at 7.1%. In the euro zone, the consumer price index reached 5.5% in the 12-month window closed in June, slowing from a high of 6.1% in May, Eurostat data showed. The number came in line with the consensus forecast of economists consulted by “The Wall Street Journal”. In the monthly comparison, the CPI increased 0.3%, accelerating in relation to the stability registered in the previous month. The core was up 5.5% year-on-year, accelerating from 5.3% in May. Without major news in the economic news, attention turns to geopolitical crises. Ukrainian President Volodymyr Zelensky accused Russia on Wednesday of having “deliberately” attacked sites used by Ukraine to export grain, three days after the agreement on those products expired. “Russian terrorists deliberately targeted the infrastructure of the grain agreement,” Zelensky denounced in Telegram, adding that he wanted to “strengthen the protection of people and port infrastructure”. In the region are the three ports used by Kiev to export its agricultural products under the framework of an agreement with Russia that expired on Monday night. The announcement that Russia would not renew its participation in a deal that allowed Ukrainians to export grain through the Black Sea could have an impact on global food prices. On the corporate agenda, WEG reported net income of BRL 1.37 billion in the second quarter, up 50% over the performance of a year earlier, driven by reduced pressure on raw material costs such as copper and steel and positive demand in the regions where it operates. The company operates in North America, Europe and Asia, in addition to Brazil, and had cash generation measured by earnings before interest, taxes, depreciation and amortization (Ebitda) of R$ 1.83 billion, an annual increase of 46% . Margin grew from 17.5% to 22.4%. The company had a 13.7% increase in net revenue, to R$ 8.17 billion, practically in line with the R$ 8.13 billion expected by analysts, according to data from Refinitiv. Weg also announced interim dividends of 609.3 million reais and a buyback program involving up to 1 million shares.

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