The Ibovespa closed up 1.51%, at 126,526.27 points this Friday (26/04). As a result, the stock market index moved in the opposite direction to that of the previous session, when Vale (VALE3) and interest rates affected investors’ mood.
The dollar also fell with investors reflecting inflation data in Brazil and the United States released this Friday morning (26).
The American PCE came in as expected, which alleviates some of the pressure on future interest rates abroad. While, in Brazil, the news is even more positive: the IPCA-15 was lower than expected.
Dollar
The North American currency fell 0.89% against the real this Friday, quoted at R$5.1163. During the week, the dollar fell 1.60%.
Abroad, the dollar rose. The DXY, the global currency index, advanced 0.39%, to 106.01 points.
Stocks on the rise
See the stocks that had the biggest rises on the stock market.
- C&A (CEAB3) 10.33%
- Tenda (TEND3) 8.83%
- I got sick (ENJU3) 8.63%
- Clearsale (CLSA3) 6.69%
- Ânima (ANIM3) 6.32%
Stocks down
- Pão de Açúcar (PCAR3) -2.47%
- Usiminas (USIM3) -1.59%
- Azevedo and Travassos (AZEV4) -1.57%
- Casas Bahia (BHIA3) -1.45%
- Klabin (KLBN11) -0.69%
The rankings include stocks with high trading volume, whether or not they make up the Ibovespa and other indices. The prices were determined between 5:10 pm and 5:30 pm.
World Stock Exchanges: New York
The New York stock exchanges closed higher and the Nasdaq advanced 2%. The euphoric reaction to the earnings reports of Alphabet and Microsoft overlapped with new signs of persistent inflation in the United States, which could postpone the interest rate cut cycle in the country.
The Dow Jones index advanced 0.40%, to 38,239.66 points; the S&P 500 gained 1.02%, at 5,099.96 points; and the Nasdaq rose 2.03%, to 15,927.90 points. During the week, there were gains of 0.67%, 2.67% and 4.23%, respectively. S&P 500 and Nasdaq recorded the biggest weekly gains since the beginning of November last year.
In particular, Alphabet jumped 10.22%, after Google’s parent company announced the payment of an unprecedented dividend, following a first quarter that exceeded market expectations. Thus, the company’s market value exceeded US$2 trillion for the first time in history, according to the website Companies Market Cap.
Europe
European stock markets closed higher in a scenario attentive to the earnings season, and with a boost from Alphabet and Microsoft, which published better-than-expected quarterly results late Thursday afternoon in New York.
In this scenario, the London Stock Exchange renewed its historic closing record. Furthermore, the stance of the main central banks to deal with inflation continues to be observed, while some corporate news also attracted attention.
The pan-European Stoxx 600 index rose 1.26% to 508.20 points. In Frankfurt, the DAX rose 1.39%, to 18,166.91 points. In Paris, the CAC 40 rose 0.89%, to 8,088.24 points. The FTSE MIB, in Milan, advanced 0.91%, to 34,249.77 points. The Ibex 35 rose 1.56% in Madrid, to 11,154.60 points, while the PSI 20 rose 1.07%, to 6,612.51 points, in Lisbon.
An important piece of data for the stock market was the PCE, one of the inflation indicators in the United States, the Fed’s favorite to guide interest rate policy.
Thus, the index registered an increase of 0.3%, in line with what was expected, and the core is also in line with estimates.
“There is relief after the GDP deflator, which was worse than expected. Yesterday the data was very bad, with weaker GDP and higher inflation. Now, the PCE, focused more on the consumption basket, brings good news”, says Paulo Gala, chief economist at Master bank.
As a result, the 10-year Treasury drops to 4.66% after yesterday’s rise, when it reached 4.70%.
“Now, there is some prospect of an interest rate cut in September, with the markets more relieved, and the stock markets should benefit, as well as the real”, adds Gala.
Inflation in Brazil
Furthermore, April’s IPCA-15 recorded inflation of 0.21% MoM (3.77% YoY). As a result, the data is below expectations, the median of which pointed to an increase of 0.29%. Furthermore, it is below the upper limit of the RMI set for 2024 (4.50%).
“Analyzing the behavior of the large groups that make up the indicator, one of the highlights of today’s release was the Food group, which went from 0.91% MoM in March to 0.61% MoM in April. Its magnitude was affected by seasonal movements and the production dynamics of more elaborate products”, highlights Carla Argenta, from CM Capital.
Therefore, the scenario is favorable for the interest rate cut at the next Copom meeting, assesses Ana Paula Carvalho, financial planner and partner at AVG Capital.
“There may be pressure on the dollar if the interest rate differential between Brazil and the USA decreases if the rate of decline in the Selic continues”, he ponders.
“Given this data, in my view, I believe that the BC will continue the rate of decline of 0.50% for the next meeting”, adds Ana Paula.
Copom will meet again on May 7th and 8th.
*With information from Estadão Conteúdo.
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