December 9, 2021

What to Expect for the Stock Exchange and the Stock Exchange in Brazil on Monday By Investing.com

© Reuters.

By Anna Beatriz Bartolo

Investing.com – After closing last week at a high of 0.76%, it opened 0.32% higher near 9:40 am Monday (23), while the dollar was down 0.46%.

In the US, 100 futures advanced 1.06%, while the S&P 500 gained 0.48% and 0.35%, respectively. The iShares MSCI Brazil ETF (NYSE: EWZ), the main offshore-traded Brazilian ETF, rose 1.23% in the US premarket.

Brazil wrote this Sunday 318 new deaths caused by Covid-19, reaching a total of 574,527 deaths since the beginning of the epidemic, according to the data of the Ministry of Health, and the country also recorded 14,404 new cases of Corona virus, bringing the total to about 20.57 million disease records. .

The country’s financial and political risks, combined with a more cautious global scenario, create a negative outlook for domestic investments, as investors opt for more safety, with inflation, a rising dollar and a lower Ibovespa, despite the good corporate fundamentals.

Economist Livio Ribeiro, of Ibre/FGV, calculates that based on Brazil’s economic fundamentals, especially balanced external accounts, a US currency could be worth R$4.20, roughly 30% lower than the current range of R$5.30/5.40 Brazilian according to Folha de S. Paulo.

However, domestic instability makes exporting companies choose to keep dollars abroad, as well as motivating foreign investors to leave the country, who in the past 12 months have withdrawn nearly $70 billion from the country.

The rise of the dollar directly affects the increase in inflation, through the import of products and commodities priced in dollars, such as oil and animal protein. The rise in prices forces the central bank to raise interest rates, which makes the national debt more expensive, and to attract investors willing to finance it, it is necessary to raise interest rates further, which creates a vicious circle.

today’s news

Focus Bulletin – In the report issued by the central bank today, consultants raised the IPCA estimate for this year from 7.05% to 7.11%, while it was 4 weeks ago at 6.56%. GDP estimates for 2021 increased from 5.28% to 5.27%. Selic’s rate forecast remained at 7.50% for the end of this year, versus 7% four weeks ago. Against the dollar, bets remained at 5.10 Brazilian reals for the third consecutive week.

BR de Mars – On Friday, the 20th, the Economic Defense Administrative Council (KED) reinforced proposals to amend the text of the coastal shipping incentive program, currently under discussion in the Senate, to avoid favoring major companies in the sector, particularly with the flexibility of chartering foreign ships for coastal resorts.

Lola – The Federal Court of Brasilia rejected the request to reopen the operation related to the Atibaia site, which involved former President Luiz Inacio Lula da Silva.

Paulo Geddes – Economy Minister Paulo Guedes said the political clashes are overshadowing positive news on the economic front, such as activity growth and the prospect of a much smaller primary deficit next year. According to Geddes, the deficit in 2022 will fall to 0.3% of GDP, compared to 1.7% this year.

Bruno Funchal – The Special Secretary for Treasury and Budget, Bruno Funchal, stated that many of the uncertainties, inconveniences and doubts in the market with PEC dos Precatórios come from the proposal to create the fund that will be fueled by the sale of the union’s assets.

election box – After President Jair Bolsonaro vetoed the R$5.7 billion electoral fund, Congress mobilized to guarantee at least R$4 billion for the 2022 campaign. It will be used to guarantee the amount the legislature wants.

Today’s agenda

Jair Bolsonaro – meeting with Secretary of State for Mines and Energy Pinto Albuquerque; Meeting with Onyx Lorenzoni, Secretary of State for Labor and Welfare; Meeting with Ciro Nogueira, Minister of State and Chief of Staff of the Presidency of the Republic.

Paulo Geddes – Lunch with Roberto Campos Neto, President of the Central Bank; Meeting with the Special Secretary of the Investment Partnership Program, Martha Sellier; Meeting with the Special Secretary for Federal Taxation, Jose Tostis.

Corporate News

Aztec (SA 🙂 – Eztec’s Board of Directors has approved a buyback program of up to 5.035 million shares of its common stock. The duration of the operation is six months, ending on February 23, 2022.

CCR (SA 🙂 – CCR reported that total traffic grew 14.1% between August 13-19 since this year, compared to the same period last year. Without franchisees ViaSul and ViaCosteira, there was a 5.8% increase. In the combined result for the year to August 19, traffic increased by 16.8% (consolidated) and 11.6% (without ViaSul and Via Costeira).

Renner Stores (SA 🙂 – Procon-SP reported Lojas Renner (SA: LREN3) seeking clarifications about the cyber attack on the company on Thursday 19. The company must inform which databases have been targeted, the level of exposure, for what period the site has been unavailable and if there has been a data leak Personal clients and other strategic information through Wednesday, 25th.

Rabbi – After noticing a significant increase in pet product purchases on its app, RappiBank, Rappi’s financial arm, plans to offer pet insurance as a way to expand its services.

Sabesp (SA 🙂 – The Governor of São Paulo, João Doria (PSDB), has stated that Sabesp will be ready for privatization in the next few years, and that the government will not do anything recklessly.