Ibovespa operates high after losses at the beginning of the week; dollar retreats

The Ibovespa was up 0.65% at 10:25 am this Wednesday (28), at 109,281 points. At the same time, the commercial dollar retreated 0.32%, quoted at R$ 5.27.

The market is trying to recover from the declines at the beginning of the week, with concerns about the formation of Lula’s ministry and the conduct of economic policy from next year. As a result, future interest rates also started the day recovering, with a retreat in practically the entire curve. Only in the short part are the contracts more stable. Therefore, there is a reaction in future interest with fiscal concerns.

One of the market’s doubts was where Senator Simone Tebet would go in Lula’s government. Everything indicates that she will even take over the Ministry of Planning. The announcement was due today and there are still doubts about the strength she will have if she commands the portfolio.

Another concern is the antagonism between her and the Minister of Finance, Fernando Haddad, who is much more PT and linked to the Workers’ Party, with a more interventionist profile.

Haddad will be responsible for creating the new fiscal framework, conducting public policies and will share with Tebet the composition of the Federal Budget. There is great expectation if Tebet really takes over Planning, she can review expenditures and propose changes in the allocation of resources in search of greater efficiency and social justice in the allocation of public coffers.

Tebet did not want to assume Planning without strength, and asked for the incorporation of the PPI (Investment Partnerships Program). Created in 2016 by the Temer government, the program makes decisions about investments in infrastructure, privatization projects and concessions.

PT resists handing over the rings to those who think the opposite about privatizations and concessions.

*Published by Ligia Tuon, with information by Thais Herédia