See stock exchange and dollar quotes today – 03/07/2023 – Market

The dollar had a slight rise this Tuesday (7), after the FGV (Fundação Getúlio Vargas) released the IGP-DI (General Price Index – Internal Availability) for February. The indicator may give signals to the market on how last month’s IPCA will come, which will be announced next Friday (10).

Abroad, the great expectation revolves around Jerome Powell, president of the Fed (Federal Reserve, the American central bank). He attends a hearing at the US Congress on Tuesday. Powell will speak with lawmakers again on Wednesday (8).

At 10:04 am (Brasília time), the spot dollar advanced 0.17%, to R$ 5.1787 in the sale.

On B3, at 10:04 am (Brasília time), the first contract dollar futures contract rose 0.21%, to R$ 5.2060.

The Stock Exchange closed high and the dollar fell this Monday (6). Analysts point to the positive signs given by the government regarding the new fiscal framework and the tax reform. Among companies, airlines stand out, with Azul rising almost 40% after releasing its 2022 results.

The Ibovespa closed up 0.80%, at 104,700 points. The spot commercial dollar closed down by 0.63%, at R$5.166.

This greater optimism with the progress of the Lula government’s economic agenda also appeared in interest rates. Contracts maturing in January 2024 fell from 13.36% at the close of last Friday (3) to 13.27%. For January 2025, the rate dropped from 12.84% to 12.69%. In contracts for January 2027, the indentation was from 13.19% to 13.10%.

This Monday, with the Central Bank’s Focus bulletin showing little change in market expectations for the indicators, attention turns to signs about tax reform and the new fiscal framework.

Minister Fernando Haddad (Finance) said this Monday that he and his team closed the proposal for the set of rules that will replace the current spending cap. According to him, the format will now be presented to other members of the government’s economic area and to President Luiz Inácio Lula da Silva (PT).

The new fiscal framework to be proposed by the government is one of the topics most awaited by the market, as it directly interferes with expectations surrounding the trajectory of public accounts over the next few years.

Regarding tax reform, in an interview with the Bloomberg agency, Reginaldo Lopes, coordinator of the working group that discusses the issue in the Chamber, said that vice president Geraldo Alckmin is actively working to make the measures feasible, especially with the business community.

This Monday, Alckmin defended the drop in interest rates in the country and stated that the government will take the necessary measures for that to happen.

At an event organized by the National Federation of Engineers, Alckmin, who is also the Minister of Development, Industry, Commerce and Services, said that when the cost of capital is too high, as is the case in Brazil, it stifles investments in the country.

“It is important to reduce interest rates. Why are interest rates so high? Is it a fiscal wedge? So I’m going to remove taxes. Is it a lack of competitiveness? We are going to increase disputes between banks. Is it fiscal insecurity? Let’s provide fiscal security,” said the vice president.

Another news pointed out as positive by analysts is the evaluation of the government of Luiz Inácio Lula da Silva (PT) about including in the tax reform a revision of the payroll taxation rules, today one of the main targets of complaints from companies for raising the cost of hiring employees.

Among the actions, the highlights of the day are airlines. Azul preferred stock rose by almost 38%, and Gol preferred by almost 24%. CVC also benefited from the move, with its common stock up nearly 20%.

This Monday morning, Azul released its figures for the fourth quarter of 2022, with growth of almost 7% in Ebitda (earnings before interest, taxes, amortization and depreciation), and optimistic projections for 2023.

The company expects to have record revenue of BRL 20 billion in 2023, and Ebitda also at record levels, of BRL 5 billion. This Sunday, Azul also announced a renegotiation of the payment of its aircraft leases, which should give the company a boost.

Bank shares also closed higher, as a resumption of companies that were in a delicate situation in the post-pandemic could take some of the pressure from default. Emphasis on common and preferred shares of Bradesco, which rose more than 3%.

The news coming from China, which helped Vale and steelmakers in the last week, today has the opposite effect on the shares. That’s because the country’s government released a growth projection of 5% for 2023, more modest than the 5.5% expected by the market. Shares in Vale, Gerdau and CSN fell more than 3%, topping the list of biggest falls on the Ibovespa for the day.

In New York, the main stock indices closed close to stability. The Dow Jones rose 0.12%. The S&P 500 gained 0.07%, and the Nasdaq closed down 0.11%. The market us
United States fluctuates according to investors’ perception of the relationship between economic activity and rising interest rates.

This week, the chairman of the Fed (Federal Reserve, the US central bank) will undergo two hearings in Congress, and the expectation is that he will maintain the toughest speech on combating inflation.

Next Friday (9) job data in the United States will be released, in the report known as Payroll. The indicator may be decisive in the decision of the Fed’s next meeting on interest rates, which takes place in March.

With Reuters