Stock market falls with Petrobras and interest rate cuts by the BC; dollar goes to R$ 4,979

What happened

Drop in Petrobras shares pulled Ibovespa down. Preferred shares fell 2.72% on the day, while common shares fell 2.04%. In addition to oil prices abroad, the state-owned company was also impacted by the appointments of the Union and minority shareholders to the Board of Directors, amid the crisis triggered after the decision not to distribute extraordinary dividends.

Negative highlight also for Cogna, which fell almost 12%. The education company reported an adjusted net loss of R$373.6 million in the fourth quarter of 2023, reversing the net profit of R$76.15 million obtained in the same period of the previous year. Performance, according to Cogna, was affected by “tax effects”.

Market reflects new cut in basic interest rates in Brazil. Yesterday (20), the Copom (Monetary Policy Committee) reduced the Selic from 11.25% to 10.75% per year. The decision was expected by analysts, since the Central Bank had already signaled in January that it would maintain the rate of cut at 0.5 percentage points in the next meetings. The new Selic level is the lowest since February 2022 (9.25%).

Eve also brought interest rate maintenance in the USA. The decision allows members of the Fed (Federal Reserve) to “carefully evaluate incoming data, the evolution of perspectives, and the balance of risks”, according to the monetary authority in a statement. As a result, American interest rates remain in the range of 5.25% and 5.5% per year.

(With Reuters)