PEC dos Precatórios helps Ibovespa correct losses; inflation remains on the radar

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The Brazilian stock exchange starts the last day of the week indicating another day in blue. In the assessment of analysts, the market has corrected part of the strong losses of recent weeks.

After finishing Thursday in the blue, the Ibovespa traded up 0.21% around 10:20 am, at 107,817 points.

The advance of the Precatório PEC has helped in this correction, which leads stocks to rise. As Nova Futura Investimentos defines, what was repulsive has become attractive. And what is valid in the market, at this moment, is the relative: “between the PEC of Precatório, with a known and limited damage, and the unpredictable, the PEC became reasonable”.

President Jair Bolsonaro said that the government is going to extend for two years the exemption from the payroll of 17 sectors, giving up around R$ 8 billion a year. The government’s change of position, which was against the measure, is part of an agreement with deputies, by votes by the PEC dos Precatório. Economy Minister Paulo Guedes said that the payroll tax exemption will occupy part of the fiscal space opened by the PEC.

Among the companies, one of the highlights for the balance sheet is Magazine Luiza, which came in weak, had adjusted profit of R$22.6 million in the third quarter, down 89%, but marketplace sales grew 67%.


Indices open stable abroad. Concern about inflation remains on the radar, with data from the United States and China above expectations. On the positive side, company balance sheets have exceeded expectations and helped to reduce concerns about rising prices and interest rates in the world.

In Asia, stocks closed higher, boosted by strong singles day sales in China. Investors are also keeping an eye on the advancement of Covid-19 cases in the region.

In Europe, stock exchanges operate close to stability, reflecting the caution in the external scenario, with high inflation and reduced growth. The market is also monitoring the escalation of tension between Russia and Ukraine after US officials warned European officials of a possible Russian military invasion of Ukraine.

agenda of the day

The result of the service sector has just come out, which disappointed. The market expected a 0.5% advance in September, but the sector fell 0.6%.

In the United States, the consumer sentiment index, prepared by the University of Michigan, was released, and the president of the Fed, Jerome Powell, from New York, spoke at an event of the institution.

Reference: CNN Brasil

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