Ibovespa retreats with Vale and external caution after earnings; dollar will…

Bloomberg Línea — O Ibovespa (IBOV) retreats this Thursday (25), amid caution abroad with technology reports and data from the United States economy.

At around 10:25 am (Brasília time), the index lost 0.61%, to 123,984 points, while the dollar rose 0.65%, to R$5.18, on a low day also for the shares of the mining company Vale ( VALE3). The company reported its first quarter balance sheet yesterday after the close of trading.

The mining company reported a net result of US$1.68 billion in the first three months of the year, a 10% drop compared to the same period in 2023, mainly due to lower prices for iron ore fines.

Read more: Vale has a 10% drop in profit in the quarter with lower iron ore prices

In the criterion attributable to shareholders, net profit was US$ 1.67 billion, a decrease of 9% over the same period last year. The decline in prices copper It’s from nickel practiced during the period also influenced the mining company’s results.

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) reached US$3.43 billion from January to March, a drop of 7% year on year, in a result also influenced by lower iron ore prices.

Here, investors also monitor speeches by the president of the Central Bank, Roberto Campos Neto, in search of possible changes in the monetary easing cycle. Investors have been raising their bets for the Selic rate at the end of the year and in 2025 in recent days.

On Wall Street, technology stocks led declines in US stock indexes on Thursday, after the disappointing outlook for Meta (META) highlighted the risk of volatility in a week of big company earnings.

Stakes are high for tech giants’ results after the frenzy around artificial intelligence drove a record high. The market’s reaction is a sign of how expectations of AI’s boost to profits for companies developing the technology may have advanced beyond expectations.

Also noteworthy are the US Gross Domestic Product (GDP) figures, which showed that the US economy grew in the last quarter at the slowest pace in almost two years, as consumer and government spending declined amid a strong increase in inflation.

GDP grew at an annualized rate of 1.6%, below all economists’ forecasts. A wider trade deficit has subtracted most of the growth since 2022. The economy’s main driver of growth – personal spending – rose at a slower-than-expected 2.5% pace.

— With information from Bloomberg News