Ibovespa reverses losses and rises 0.21% pre-Copom; dollar advances to R$ 5.09

The Ibovespa closed up 0.21%, at 129,480.89 points this Wednesday (05/08), while the market awaits the decision of the Central Bank’s Monetary Policy Committee (Copom) on the future of the Selic rate. The main Brazilian market index has a positive influence on Petrobras shares, which rise 1.50%.

On the other hand, the dollar started to rise against the real again in the trading session. The North American currency advanced to R$5.0908, an increase of 0.47% in the session. The currency’s rise goes in the same direction as the stock market, with a more optimistic view on local assets.

Ibovespa

The Ibovespa opened lower at the beginning of the trading session. As the day drew to a close, on the eve of the Copom’s decision on the interest rate, the index turned around and began an increase to remain above 129 thousand points.

The prevailing estimate among economists and analysts is a 0.25 percentage point cut in the interest rate. “It is worth remembering that, with the sequence of drops in the Selic, the strategy is to stimulate both savings and investments”, says André Luiz Rocha, variable income operator at Manchester Investimentos.

“With lower interest rates, consumers may feel encouraged to take out credit to purchase semi-durable goods. Companies, in turn, can expand or take credit for their own investments”, says Rocha.

Analysts highlight that Petrobras gave momentum to the Ibovespa turnaround. Abroad, prices for the futures contract for a barrel of Brent oil rose 0.72%, which helped the shares of the state oil company.

On the stock exchange, Petrobras’ common stock (PETR3) advanced 1.06%, while the PN share (PETR4) gained 1.53%.

On the other hand, the fall in iron ore on the international market put pressure on Vale’s shares. The mining company’s shares fell 0.91% on the Ibovespa.

But the highlight of the session was BRF (BRFS3). Shares in the poultry slaughterhouse, controlled by Marfrig (MRFG3), rose 11.17% after the company approved a share buyback program. The stock also had a recommendation updated by Bank of America, from sell to neutral.

But, in fact, the share with the biggest increase on the stock exchange was Marfrig (MRFG3), 11.18%.

Dollar today advances in the pre-Copom

On the other hand, the dollar appreciated against the Brazilian real, on the eve of the Copom. The North American currency advanced to R$5.0908, an increase of 0.47% in the session.

With the prospect of interest rate cuts, Rocha, from Manchester, mentions that there is pressure on the real because investors tend to withdraw money from contracts linked to Brazilian interest rates.

“A possible consequence of new Selic cuts is the devaluation of the real against other foreign currencies. This is because lower interest rates lead to less attractive returns,” he comments.

Abroad, the dollar gained strength against international pairs such as the yen and the euro. Thus, the DXY index, which compares the US currency to a basket of important currencies, closed up 0.12%, at 105.54 points.

Stocks on the rise

Considering all the shares present on B3, the best performance of the day on the stock exchange was Marfrig’s share (MRFG3). The meatpacking company’s assets rose 11.18%, an increase even greater than that of BRF (BRFS3).

Check out the five main rises on the stock market below, considering only shares that were part of more than a thousand purchase and sale negotiations.

Marfrig ON (MRFG3): +11.18%
BRF SA (BRFS3): +11.17%
Lojas Quero-Quero ON (LJQQ3): +10.55%
D1000 Farma ON (DMVF3): +6.35%
Lojas Renner ON (LREN3): +5.78%

Stocks falling

Oncoclínicas (ONCO3) had the lowest performance on the stock exchange. Shares fell nearly 16% on the stock market.

See below the five main falls on the stock market. The ranking follows the same criteria as the list of largest shares.

Oncoclinics ON (ONCO3): -15.93%
Hi BR ON (OIBR3): -9.33%
Petz ON (PETZ3): -6.02%
Pão de Açúcar ON (PCAR3): -5.88%
Telefônica Brasil ON (VIVT3): -5.63%

New York Stock Exchanges

The New York stock exchanges ended the session without a single direction, remaining that way since the beginning of the afternoon. After comments from Federal Reserve (Fed) officials that revealed little about the future of monetary policy in the United States, markets were left without drivers to establish a movement.

The Dow Jones index closed up 0.44%, at 39,056.39 points, and extended its longest positive streak of 2024 to six trading sessions. The S&P 500 closed stable, at 5,187.67 points, and the Nasdaq dropped 0.18%, at 16,302.76 points.

European Stock Exchanges

The main European stock indices ended the session on a firm high, amid another wave of quarterly results from companies in the region that pleased the market, at the same time as they reacted to the interest rate cut made by the Swedish central bank. The Bank of England’s (BoE) monetary policy decision, due tomorrow, was also on investors’ radar.

The Stoxx 600 index rose 0.33% to 515.72 points, with the food and beverage sector leading the gains by rising 1.7%. The DAX, in Frankfurt, advanced 0.37%, to 18,498.38 points, the CAC 40, in Paris, recorded a gain of 0.69%, to 8,131.41 points, and the FTSE 100, on the London Stock Exchange, rose 0.49%, to 8,354.05 points.

*With information from Agência Estado.