Ibovespa fell 7.2% in the year; President Lula has a conflicting relationship with financial market agents
The Ibovespa, the main index of B3 (São Paulo Stock Exchange), registered the biggest drop for the first 100 days of government since the 1st term of Fernando Henrique Cardoso (1995-1998). It fell 7.20% in the accumulated result for the year until this Monday (10.Apr.2023).
The president Luiz Inacio Lula da Silva (PT) celebrated this Monday (10.Apr) the 100 days of government. The Ibovespa ended last year at 109,734 points. It reached 101,846 points in this 2nd. The survey is Einar Riverofrom the TradeMap.
The best performance of the Ibovespa in the first 100 days of government was in the 2nd term of Fernando Henrique Cardoso (1999-2002), when it rose 66.98%. Then, under the government Jair Bolsonaro (PL): increase of 9.18%. In Lula’s previous terms, the first 100 days had been positive.
Throughout this year, the lowest level was on March 23, when it closed the day at 97,926 points after a statement from the Copom (Monetary Policy Committee). The highest was on January 25, when it reached 114,270 points. Lula has a conflicting relationship with financial market agents.
In commemoration of the 100th day of government, he criticized the pessimism of analysts and stated that, if it is to listen to the market, it is better to give up. The president has also continued his complaints against the BC (Central Bank), seen by the agents as a problem for the economic stability of the country.
This Monday (10.Apr), the Stock Exchange rose 1.02%, awaiting the submission of the new fiscal rules to Congress. The Minister of Finance, Fernando Haddad, said that the final details have already been defined and the text will be delivered by Friday (15.Apr.2023). The rule will replace the current spending cap.
COOL FROM ABROAD
While the main global indices register an increase –even in the adverse external scenario with war in Ukraine, high inflation, risk of recession and bank failures–, the Ibovespa is against the grain of the world.
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