The domestic market operated this Thursday (2) with a focus on the GDP result for the third quarter – released this morning by the IBGE -, and on the PEC dos Precatórios, voted by the Senate plenary today.
The Ibovespa rose 3.66% to 104,466.24 points. This was the biggest increase since April 7, 2020, when the main Brazilian index appreciated 3.67%.
While the dollar closed down 0.21%, quoted at R$ 5.659.
The Ministry of Health said today that two other cases of the variant were confirmed in the Federal District, bringing to five the number of identified cases of the new strain in the country.
The new cases are of passengers who recently came from South Africa, on a flight that passed through Ethiopia and landed in Garulhos (SP). The two had positive results for Covid after arriving in Brasília, and since then they have been in isolation, according to the DF government.
According to the ministry, the five patients are with mild symptoms of Covid-19 or asymptomatic.
Rooms and descents to B3:
See what were the main highlights of this Thursday (2):
biggest highs
- Braskem (BRKM5) + 9.51%
- CSN (CSNA3) + 9.17%
- PetroRio (PRIO3) +8,63%
- JHSF (JHSF3) +8,42%
- Sabesp (SASP3) +8.07%
biggest casualties
- American (AMER3) -3.00%
- American Stores (LAME4) -2.55%
- Sum Group (SUM3) -2.09%
- Petz (PETZ3) -2.01%
- Banco Inter (BIDI11) -1.35%
Dollar
The US currency ended lower, with the real benefiting from a day of recovery in commodities and a rally of risky assets abroad. This afternoon, WTI oil grew 2.35%, to US$ 67.12, while Brent traded in high of 2.03%, to US$ 70.25.
Abroad, currencies correlated to commodities such as the Canadian dollar, Mexican peso, Colombian peso and Chilean peso appreciated, while a commodity index rose 0.5%.
START
The Brazilian economy entered a technical recession, registering contraction in the third quarter for the second time in a row, with losses in agriculture and exports overshadowing gains in services, in a scenario of high inflation and rising interest rates in the country and despite the advance of vaccination against Covid-19.
The Gross Domestic Product of Brazil registered a drop of 0.1% between July and September, informed the IBGE (Brazilian Institute of Geography and Statistics) this Thursday.
The IBGE further worsened the result for the second quarter by revising the 0.1% decline informed before to a 0.4% retraction. Two consecutive quarters of contraction are considered a technical recession. In the first quarter, the economy grew 1.3%.
In comparison with the third quarter of 2020, GDP increased by 4.0%.
According to IBGE, GDP is now at the level of the end of 2019 and beginning of 2020, the pre-pandemic period, and still 3.4% below the highest point of activity in the historical series, reached in the first quarter of 2014.
To Reuters, the secretary of Economic Policy, Adolfo Sachsida, said that the economy’s performance in the third quarter was strongly affected by a negative shock in agribusiness, which suffered an 8% contraction over the previous three months, and the implications of this economic data for the estimates will still need to be analyzed by the secretariat.
PEC of Precatório
The Senate approved this Thursday, in two rounds, the PEC dos Precatórios, which modifies the rules for the settlement of these government debts and changes the deadline for correction of the spending ceiling by the Broad Consumer Price Index (IPCA).
The first round was approved with 64 votes in favour, 13 against and 2 abstentions.
The project, which makes room in the 2022 Budget for Auxílio Brasil, was approved on Tuesday (30) at the Committee on Constitution and Justice (CCJ), by 16 votes to 10.
Among the main changes in the PEC are: the transformation of Auxílio Brasil into a permanent program, with no source requirement, circumventing the fiscal responsibility law, and the exclusion of Fundef’s court orders from the expenditure ceiling.
One of the points that particularly bothered the market is the reduction of the deadline for payment of court orders from 2036 to 2026. Technicians from the Ministry of Economy say that it would not be feasible to pay the debt within that period. The chief economist of Nova Futura, Nicolas Borsoi, notes that, with this, all discussions about spending caps may have to happen again soon again, which increases the fiscal risk.
“In any case, the Market was waiting for the approval of the PEC [dos Precatórios]”, said Pedro Paulo Silveira, manager at Nova Futura. He also cited the continuity of volatility due to uncertainties involving the Ômicron variant and the fact that the stock market is “discounted”.
Changed during the course of the Senate, the text will have to return to the Chamber of Deputies.
Test your knowledge of Ibovespa
Let’s start with an easy one: what is the Ibovespa?
Who is responsible for calculating the Ibovespa?
What types of assets are eligible to be listed on the Ibovespa?
Which of these is NOT a criterion for a stock to be listed on the Ibovespa
How many shares are currently in the theoretical portfolio of Ibovespa?
How often is Ibovespa’s theoretical portfolio revised?
What is the stock with the greatest weight on the Ibovespa?
What is the stock with the lowest weight on the Ibovespa?
Each point on the Ibovespa is equivalent to 1 real. This statement is
What is the historical record for closing the Ibovespa?
Try again!
Tip: follow CNN Business to understand more about the Ibovespa
Nice job!
You know a lot about the Ibovespa, but you could know a little more
Sensational!
Congratulations! You are an expert on Ibovespa
*With information from Reuters and Priscila Yazbek
Reference: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
