December 9, 2021
Ibovespa has a new volatile session with the PEC and US agenda on the radar By Reuters

Ibovespa has a new volatile session with the PEC and US agenda on the radar By Reuters

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© Reuters. Photo: Sede da B3 10/19/2021 (Reuters) / Amanda Perubelli

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Written by Andre Roman

São Paulo (Reuters) – Another volatile session saw this Wednesday, with investors focused on the Presidential Election Commission’s prudential analysis of a Senate committee and on the docket of US economic data, including the minutes of the latest Senate meeting. Federal Reserve.

At 12:14 am, the Ibovespa index rose 0.61% to 104.289.78 points. And at its lowest level so far, it fell to 102,464.29 points. Maximum, advance to 104383.32 points. The financial volume amounted to 7.8 billion riyals.

A focus of attention in Brazil turns to the analysis of the PEC dos Precatórios at the Senate Constitution and Justice Committee on Wednesday.

The day before, the text rapporteur and head of government in the Chamber of Deputies, Fernando Bezerra (MDB-PE), announced six changes to the proposal, including defining Auxílio Brasil as a R$400 permanent social program. A full vote is expected next week.

Rachel de Sa, head of economics at Rico Investments, said doubts continue to weigh on Brazilian assets. “A scenario” that could be worse “is still under evaluation,” he said, referring to the lack of oversight in public accounts.

In the US, Wednesday smelled like a weekend eve, as US markets close the next session for the Thanksgiving holiday and close early on Friday.

Before that, however, a batch of economic data had highlighted, including inflation, GDP and initial jobless claims figures, with the afternoon still holding the minutes of the Fed’s latest monetary policy meeting.

The economic docket is gaining more importance due to market expectations of an interest rate hike by the Federal Reserve earlier than initially expected, after Jerome Powell was reappointed for another term at the helm of the Fed.

Highlights

– BANCO INTER UNIT stock is up 4.6%, training for a recovery after closing the previous day at its lowest level since January 7. In the banking sector, the rates of BRADESCO PN (SA 🙂 and ITAÚ UNIBANCO ON increased by 0.9% each.

– VALE ON (SA:) posted a 1.7% increase as did steel mills in the wake of higher futures prices in Asia.

Petrobras BN (SA 🙂 is up 1.4%, with the company releasing its 2022-2026 Strategic Plan on the radar on Thursday. Negotiations also led to lower prices abroad.

– TIM ON (SA 🙂 fell 0.7%. The company said it had not received any direct contact or offer from US private equity firm KKR, which had made a bid for Brazilian parent company Telecom Italia.

– LOJAS RENNER ON (SA 🙂 yielded 0.4%, although Black Friday approached, due to the high inflation scenario and monetary tightening cycle, which also weakened other apparel companies. SOMA ON GROUP saw its third decline in a row with returns of 4.3%.