Ibovespa rises above 133 thousand points, with a reduction in the inflation forecast; dollar operates at a low

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Last Friday, the main stock market index advanced 0.43%, to 132,753 points. The North American currency fell 0.54%, quoted at R$ 4.8606. Dollar banknotes bearfotos/Freepik Ibovespa, the main stock index of the Brazilian stock exchange, B3, opened higher this Tuesday (26), starting the last week of the year and, also, a shorter week with less turnover Investors reflect the release of the latest 2023 Focus Bulletin, which showed, once again, a reduction in expectations for inflation for this and next year. Projections for the price of the dollar also fell. This week, the market is still awaiting some important releases, with emphasis on inflation and employment data in Brazil and economic activity in the United States. In the same scenario, the dollar operates lower. See the day in the markets below. Understand what makes the dollar rise or fall Dollar At 10:20 am, the dollar fell 0.28%, quoted at R$4.8470. See more quotes. Last Friday (22), the North American currency closed down 0.54%, sold at R$4.8606. As a result, it began to accumulate falls of: 1.54% in the week; 1.11% in the month; 7.91% in the year. Ibovespa At the same time, Ibovespa rose 0.40%, to 133,289 points. Last Friday, the index closed with an increase of 0.43%, at 132,753 points, renewing its highest historical level for the second consecutive day. As a result, it accumulated gains of: 1.96% in the week; 4.26% in the month; 20.98% in the year. READ ALSO CASH OR CARD? What is the best way to take dollars when traveling? DOLLAR: When is the best time to buy the currency? What’s moving the markets? The week begins with a weaker economic agenda, with emphasis only on the traditional Focus Bulletin, a report from the Central Bank of Brazil (BC) that brings together projections from financial market economists for the country’s main indicators. In the last edition of the year, estimates for the Broad Consumer Price Index (IPCA), which is Brazil’s official inflation, fell again for both 2023 and 2024. For this year, expectations are that the IPCA will accumulate 4.46% increase. With the drop, analysts’ estimate for 2023 inflation remains below the target ceiling defined by the National Monetary Council (CMN) – the target is 3.25% and can range between 1.75% and 4.75% . For next year, the inflation estimate fell from 3.93% to 3.91% last week. Next year, the inflation target is 3% and will be considered met if it fluctuates between 1.5% and 4.5%. There was also a reduction in projections for the price of the dollar in 2023. Now, economists believe that the North American currency should end the year quoted at R$4.90. The main reason for this drop in dollar projections is the expectation that the Federal Reserve (Fe, the American central bank) may start to cut its interest rates, currently between 5.25% and 5.50% per year, already in the first half of next year. Lower interest rates in the United States reduce the profitability delivered by American public bonds, considered the safest in the world, which encourages investors to migrate to risky assets, which offer higher returns, such as the stock markets and bonds of emerging countries , like Brazil. Throughout the week, other indicators will be released and could affect market sentiment, mainly the IPCA-15 and CAGED here, and unemployment insurance claims and home sales in the United States.

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