SAO PAULO (Reuters) – The Ibovespa had a second straight fall this Tuesday, interrupting a recovery in early December, reflecting another negative day abroad, on the eve of the Federal Reserve’s (Fed) monetary policy decision.
The Ibovespa fell 0.58% to 106,759.92 points. The financial volume of the session was 25.9 billion reais.
Petrobras was the one who pressed the index the most, while JBS was at the opposite end. In percentage, companies linked to the technology sector had the biggest losses, with the prospect of higher interest rates in Brazil and abroad. Refrigerators were positive highlights.
The Ibovespa opened again on a high. But the worsening on Wall Street, after higher-than-expected producer inflation data in the US, made the local index return gains in the early afternoon and remain in the red until the end of trading.
The producer price index in the US rose 0.8% in November, above a projection of 0.5% in a Reuters survey. The data solidifies expectations that the Fed will accelerate the withdrawal of monetary stimulus — monthly bond purchases — on Wednesday, when it releases the decision of its monetary policy meeting. If implemented, the measure would mean less liquidity for global markets, affecting equity and emerging markets in particular.
The Nasdaq was down more than 1% and was the bearish highlight among US indices. In Europe, the pan-European STOXX 600 index dropped 0.84%, with pressure from technology papers. Caution with the Ômicron variant also influenced markets.
In Brazil, the minutes of the latest Copom decision, released this morning, reiterated the messages in the statement — seen as harsh on inflation — and revealed that committee members even assessed a higher than 1.5 percentage point in the Selic .
In the afternoon, Fitch reaffirmed Brazil’s sovereign credit rating in foreign currency at “BB-“, with a negative outlook, highlighting negative risks to the economy, public finances and the debt trajectory. The surprising drop of more than 1% in service sector activity in October eroded signs of economic weakness.
On the political scene, the market continued to pay attention to the processing of the remaining sections of the PEC dos Precatórios.
“PEC is already very well priced by the market,” said Josias de Matos, a finance specialist at Toro Investimentos. “If there is news that will affect the market now (about PEC), we will be talking about negative news.”
HIGHLIGHTS
– BANCO PAN PN dropped 12.2%, LOCAWEB ON sank 11.1%, MÉLIUZ ON collapsed 10.7% and INTER UNIT and PN fell 8.3% and 7.7%, respectively.
– ELETROBRAS ON fell 4.1% and PN yielded 4%, in light of news that the first analysis by the Federal Court of Auditors on the privatization of the company, scheduled for Wednesday, could halt the privatization process and affect the calendar for the operation.
– JBS ON rose 5.3% and MARFRIG ON rose 6.8%. BRF ON rose 3.6%, after announcing that it agreed with the Qatar Investment Authority (QIA) to terminate a put option on QIA provided for in a shareholders’ agreement governing the partnership between both companies in TBQ Foods.
– BRADESCO PN rose 1.5% and ON rose 1.4%. ITAÚ UNIBANCO PN increased by almost 1%. BANCO DO BRASIL ON and SANTANDER UNIT closed close to stability.
– ECORODOVIAS ON gave 6% after Credit Suisse reduced the recommendation for the role from “outperform” to “neutral”, given the prospect of higher capital and debt costs due to higher interest rates.
– CCR ON rose nearly 1%, despite Credit having cut the target share price, after news from O Globo that Itaúsa and Votorantim are interested in buying Andrade Gutierrez’ stake in the company.
– ITAÚSA PN rose 0.7%. In addition to the news of interest in CCR’s stake, the company announced that it had sold around 1.4% of its stake in XP, raising 1.2 billion reais, and reported payment of additional interest on equity. XP on Wall Street sank 6.4%.
– PETROBRAS PN and ON dropped 1.2% and 1.4%, respectively, after the state-owned company announced a reduction in the price of gasoline at refineries amid the drop in oil prices. In addition, Reuters reported that Petrobras had raised the asking price for at least one refinery in the sales process, frustrating some buyers and delaying the promised breach of its refining monopoly.
– VALUE ON closed stable. Iron ore futures in Dalian fell.
– VIA ON dropped 6.6%, MAGAZINE LUIZA ON dropped 5.1%. Fashion retailers, SOMA ON had a drop of 5.1% and LOJAS RENNER ON decreased by 4.9%.
(By Andre Romani)
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