Ibovespa accelerates fall after confirmation of Prates in Petrobras; dollar goes up

The Ibovespa fell this Thursday morning (26), after Petrobras’ Board of Directors approved former Senator Jean Paul Prates at the head of the company, which led to a drop of more than 3% in the state’s shares. The main stock index had fallen by 0.4% around 1:45 pm, at 113,811 points. The dollar rose 0.12%, to R$ 5.0860.

Earlier, the United States disclosed that the country’s Gross Domestic Product (GDP) rose 2.9% in the fourth quarter of 2022, higher than expected by the market. The data should help calibrate bets on the Federal Reserve’s next steps.

The Ibovespa still had the help of Vale’s shares, among the biggest rises, with an increase of 1.14%.

This Thursday, the next steps of the Lula government are on the radar. In addition, the corporate earnings season for the fourth quarter of 2022 begins. Cielo starts work by disclosing its numbers after the market closes.

The Brazilian market tries to extend the gains of the last few days, but profit taking holds better performances.

The Brazilian stock exchange is still trying to benefit from the strong flow of foreigners that has already accumulated more than R$ 8 billion in January until the 24th. The expectation of greater demand for commodities with the resumption of China also helps.

On the eve, the Ibovespa closed up by 1.1%, at 114,270.07 points, which had not happened since November last year, in a move packed by foreign purchases.

The day before, the dollar in sight fell 1.21%, to R$ 5.080 on sale, the lowest closing level since November 4 of last year (R$ 5.052).

The Central Bank will hold an auction of up to 16,000 traditional exchange rate swap contracts in this trading session for the purpose of rolling over the maturity of March 1, 2023.

(With information from Thais Heredia and Reuters)