Market reflects advance of PEC of Precatório and inflation data in Brazil

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The opening of the market this Wednesday (10) begins with an eye on inflation data in Brazil and the United States and echoing the PEC dos Precatório, approved the day before in the Chamber of Deputies.

In Brazil, the Ibovespa registered a drop of 0.25% around 10:10 am, to 105,291.57 points. The dollar fell by 0.6%, quoted at R$ 5.457 on sale.

On Tuesday, the São Paulo stock exchange rose with the expectation of approval of the matter that makes room in the budget for Brazil Aid, and the dollar closed at the lowest rate in three weeks, at R$ 5.49.

There were 323 votes against 172, a larger margin than the first round. Now, the bill is going to be considered by the Federal Senate, where it should have more resistance. The strong support in the votes of the highlights of the PEC dos Precatórios and the decision not to paralyze the progress of the PEC, by Rosa Weber, helped to boost the actions.

The market sees the advance of the PEC with good eyes for two main reasons: the first is that the damage caused by the hole in the ceiling with the PEC was already “in the price”, so the approval only confirms an already negative scenario for the public accounts.

Secondly, the PEC is the well-known path, so it brings some relief because it reduces uncertainties and removes the risk of solutions to support Auxílio Brasil that would make the bills even worse. As an analyst summarizes, the advance of the PEC, in a way, turns this page.


Overseas, American futures open in a slight decline. The mood is cautious after the producer inflation data in the United States, which rose by 8.6% in 12 months.

Now, investors are waiting for consumer inflation data, which come out at 10:30 am on Wednesday (10), to see which thesis gains more strength: that of transitory inflation or that of pressured inflation, which requires a reduction in stimuli and an increase in interest rates . If the second interpretation wins, the market must react negatively

Asia helps the pressured inflation thesis gain traction. On Tuesday (9) came out Consumer Inflation data (CPI) in China, which rose from 0.7% in September to 1.5% in October. Prices registered the highest rate since July 1995 and most indices closed down.

In Europe, indices fall mostly reflecting the external scenario, but the UK rises on the back of positive balance sheets, such as that of Marks & Spencer, which rose 15% after strong third quarter results.

agenda of the day

The IBGE has just released the Extended National Consumer Price Index (IPCA) for October, which rose 1.25% above the market’s forecast, which forecast a 1.05% increase. It is the highest rate for the month since 2002. In 12 months, the IPCA accumulates an increase of 10.67%. Fuel, airline tickets and food were once again the highlights.

Among the balance sheets, the highlights are for JBS, BRF and Via Varejo. Outside, the highlights are the consumer inflation data.

Reference: CNN Brasil

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