Ibovespa traded near stability on Monday after falling at the open as a reversal in the overseas oil signal helped Petrobras shares as investors wait for economic data out of the US to be released this week.
While Petrobras helped the index, Vale and other metal-commodity companies fell after further declines in iron ore prices in Asia.
At 11:38 (Brasilia time), the Ibovespa was down 0.14% to 104,224.63 points. The financial volume amounted to 6.3 billion reais.
“The stock market is crashing because of Vale and oil. Oil has improved and Petrobras has flown,” said Pedro Paulo Silveira, director of asset management at Nova Futura Gestora.
Investors start the week expecting US economic data, such as gross domestic product (GDP) and inflation readings, to be released in the coming days. The numbers can calibrate bets for the Federal Reserve’s (Fed)’s next move in interest rates. Also on the radar are the quarterly financial statements of big tech companies like Alphabet, which owns Google, Microsoft and Meta.
“In the US, this week, we will have the release of GDP and the PCE deflator, data that will be important for the next Federal Reserve monetary policy meeting,” writes the XP team in a report.
New York’s three major indexes showed little change, with the S&P 500 up 0.12%. On Friday, when the Ibovespa was closed for the Tiradentes party, the major Wall Street indexes closed virtually stable.
At the local level, the financial agents remained attentive to the development of the fiscal framework in the Brazilian Congress, assimilating the new declarations of the authorities.
Finance Minister Fernando Haddad told O Estado de S. Paulo newspaper that the Finance Ministry is preparing with the Attorney General’s Office to publish a list of companies currently benefiting from waivers and subsidies.
Also, during an official trip to Portugal, President Luiz Inácio Lula da Silva once again criticized the current level of the base rate of interest in Brazil and said that it made lending impractical.
HIGHLIGHTS
– VALE ON shed 3.4% to 72.12 reais in third consecutive declines after iron ore fell to its lowest intraday level in more than four months on Dalian and Singapore exchanges amid weak demand for steel in China and signs of ample supply from major mining companies. Iron ore had already retreated on Friday when the exchange closed in Brazil. CSN MINERAÇÃO ON fell 5.15%, while steelmakers also fell, down 2.01% from GERDAU PN.
– PETROBRAS PN gains 1.72%, to 27.15 reais, after the turnaround of Brent oil abroad, which rises by 1.1%. The commodity contract also advanced on Friday. The state-owned company also announced this morning that it was postponing the commissioning of three FPSO systems by one year compared to previously released forecasts, but stressed it did not expect an impact on its oil production and target gases. In the sector, PRIO ON was up 2.91% and 3R PETROLEUM ON was down 1.68%.
– SANTANDER BRASIL UNIT fell 0.63% to 26.79 reais before opening earnings season for major Brazilian banks on Tuesday morning. The session was generally negative for the sector, with ITAÚ UNIBANCO PN down 0.23% to 25.54 reais. In the background, Lula has passed a law that extends payment times for Pronampe loans.
– HAPVIDA ON rose by 3.47% to 2.68 reais, second consecutive increase. BTG analysts have echoed the company’s coverage with a “buy” recommendation.
– MRV ON loses 4.54%, to 6.52 reais, the fifth drop in the last six sessions. Real estate investors have been keeping their eyes peeled for the Federal Court’s decision on using the Reference Rate to adjust FGTS-related account balances. The trial will resume on Thursday.
– COTEMINAS PN, which is not part of Ibovespa, rose by 66.94%, to 2.02 reais, after signing a partnership with the Chinese company Shein. The memorandum of understanding signed between the companies calls for efforts to get 2,000 Coteminas customers to start supplying Shein, which will start making clothes locally, it announced last week.
– IRB ON recorded an increase of 1.08%, to 26.28 reais, after the reinsurance company recorded a net profit of 14.3 million reais in February this year, against a loss of 50 .9 million a year earlier. The loss ratio for the period went from 81% to 81.7%. The stock is also not part of the Ibovespa.
Source: Terra
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