The dollar fell slightly against the real on Wednesday as investors adjusted positions after the currency’s recent jump, while Ibovespa gained momentum with a boost from Petrobras after Senator Jean Paul Prates (PT-RN) , appointed by the new government to run the state company, specified that there will be no interventions on fuel prices.
By around 3:30 pm (Brasilia time), Ibovespa was up 1.2% to 105,420.16 points, after accumulating about 5% down Monday and Tuesday. The US currency, on the other hand, lost 0.08%, to 5.4478 reais on sale, after changing sign several times during the session and after gaining almost 3.3% in the last two trading sessions.
Meanwhile, in the forward rate market, rates on major DIs fell 3 to 7 basis points across the curve from January 2024 to January 2028.
The improvement in the stock market came on the heels of the recovery of Petrobras shares, which jumped 3.58%, to 23.14 reais, around 15:40 (Brasilia time), in the wake of Prates’ statements. His comments weren’t exactly new, but they served as an argument for the stock’s improvement after consecutive declines and the sensitivity of financial agents to the issue.
Prates told reporters at Palazzo Planalto that there will be no untying on international prices, nor direct interference on fuel prices. He added that the idea is to untie the import parity price (PPI), as previously indicated by the executive.
“Prates’ statement that prices will be market-driven with the influence of international swings instead of a ‘Brazilianized’ price as previously suggested has given Petrobras share price great relief,” said the chief investment officer at Reach Capital, Ricardo Campos.
“It’s not exactly new, but the market believed it more today,” he added, noting that the move also comes amid sharp declines in oil prices overseas, with the Brent contract down more than 4 %.
According to investors, support for the recovery of Brazilian assets this Wednesday was also supported by the declaration of the Minister of the Civil House, Rui Costa, according to which no proposal for a revision of the reforms, including the social security one, is currently being studied.
In an interview with GloboNews, the minister of institutional relations, Alexandre Padilha, who met with President Luiz Inácio Lula da Silva last Wednesday, reiterated Costa’s negative attitude towards social security.
On the eve of the new Minister of Social Security, Carlos Lupi, in his inauguration speech he had criticized the reform of the Social Security of the Jair Bolsonaro government, defining it “anti-reform” and giving signs of wanting to discuss changes, which embittered the sentiment of the market.
Abroad, supporting the rise in Ibovespa, Wall Street showed a positive bias shortly before the publication of the minutes of the latest interest rate decision by the US central bank.
The paper, to be released at 16:00 (16:00 GMT), could provide more insight into the current monetary tightening cycle and how Federal Reserve officials are beginning to assess the risks to economic growth in light of their main concern, the high inflation.
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Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
