In the last week of the year, the Ibovespa was down by 0.54% at 10:17 am, at 109,099 points. At the same time, the commercial dollar rose 0.36%, quoted at R$ 5.185 on sale. The currency’s movement indicated slight correction after last week’s sharp drop.
This week will be one of reduced trading, with investors leaving for the year-end recess. In Europe and the United States, stock exchanges are closed today.
The Ibovespa closed last week at an increase of almost 7%, with the improvement in the perception of local risk, mainly, with the positive surprise of the reduction of the term of the Transition PEC from two to one year, and after speeches by the future Minister of Finance , Fernando Haddad, and President-elect Luiz Inácio Lula da Silva (PT).
Although the two didn’t say anything very relevant, they did give slight indications of a slightly greater concern with the inspector than in previous weeks. Haddad said that he wants to accelerate the discussion of the new fiscal framework and that there is no trace of adventure or irresponsibility expected for his management at the head of the Economy.
During the announcement of the new ministers, Lula said that everyone will have to tighten their belts and that the increase in ministries does not mean more spending, which pleased the markets.
This week, attention will turn to defining the name that will head the Ministry of Planning. André Lara Resende, one of the fathers of Plano Real, was reportedly invited last week and declined. Now, Simone Tebet appears as the main listed, but resists the nomination, according to the investigation of Gustavo Uribe, a political analyst at CNN. Given this, Lula will try to convince Tebet to keep the portfolio.
The market likes Tebet’s name, but the general assessment is that, with Hadadd on the Treasury and more political than technical names on the rest of the team, whoever stays in Planning must have difficulty taking the management of the economy more to the center.
The expectation for the week is also the definition of the presidency of Petrobras, which should remain with Jean Paul Prates, which has already been anticipated by the market and, therefore, should not have such an impact on prices.
Among the highlights of the day is the Focus Bulletin, in which the expectation of inflation dropped to 2022, but rose to 2023, 2024 and 2025, due to increased fiscal risks, increased public spending with PEC, which pressures the interest curve. In addition, there is the expectation of greater demand for next year, which also increases the chances of higher inflation.
*Published by Ligia Tuon, with information from Priscila Yazbek
Source: CNN Brasil
A journalist with over 7 years of experience in the news industry, currently working at World Stock Market as an author for the Entertainment section and also contributing to the Economics or finance section on a part-time basis. Has a passion for Entertainment and fashion topics, and has put in a lot of research and effort to provide accurate information to readers.
