Bloomberg Línea — O Ibovespa (IBOV) retreats this Tuesday (23) amid a fall in commodity prices, such as iron ore and oil, which weigh on blue chips Vale (VALE3) and Petrobras (PETR3; PETR4).
At around 10:25 am (Brasília time), the main variable income index on the Brazilian stock exchange gave up 0.77%, at 124,600 points. The scenario contributed to an appreciation of the dollar, after two days of decline: the currency rose 0.4%, trading at R$5.19 at the same time.
On the day’s agenda, the Central Bank’s Focus report revised upwards all projections for economic indicators in 2024 and now points to a higher Selic at the end of the year and in 2025.
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The estimate for the basic rate rose from 9.13% to 9.50% at the end of this year, and from 8.50% to 9.00% in December 2025.
Economists consulted by the monetary authority also estimate more persistent inflation, with the IPCA expected to rise by 3.73% this year, compared to 3.71% previously.
For GDP, the projection rose from 1.95% to 2.02% growth in Brazilian activity, while for the exchange rate, the estimate was raised from R$4.97 to R$5.00.
In a report, JPMorgan (JPM) said that it sees the Selic rate at 10% per year until December and that it expects the Central Bank to make three consecutive cuts of 0.25 percentage points at the next monetary policy meetings.
The corporate earnings season also continues to dictate the direction of the markets. Today, large companies like Visa, Tesla, Spotify and General Electric release their quarterly numbers. Around 180 companies – representing more than 40% of the market value of the S&P 500 index – are expected to report their first quarter numbers in the coming days.
The focus on corporate profits comes after a slump driven by geopolitical fears and signs that the Federal Reserve will be in no rush to cut interest rates.
During the week, highlights also included technology giants Meta, Alphabet and Microsoft, as well as Brazilian mining company Vale. Inflation data in Brazil (IPCA-15) and the United States (PCE) will also be monitored at the end of the week.
— With information from Bloomberg News
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