what to expect for stock exchange and exchange in Brazil this Monday By Investing.com

© Reuters.

By Ana Beatriz Bartolo

Investing.com – After closing last week at a high of 0.76%, it opened up 0.32% near 9:40 am this Monday (23), while the dollar retreated 0.46%.

In the US, the 100 futures advanced 1.06% operated stable, while the S&P 500 rose 0.48% and 0.35%, respectively. The iShares MSCI Brazil ETF (NYSE:EWZ), the main Brazilian ETF traded abroad, rose 1.23% in the American pre-market.

This Sunday, Brazil recorded 318 new deaths caused by Covid-19, reaching a total of 574,527 deaths since the beginning of the pandemic, according to data from the Ministry of Health. The country also had 14,404 new cases of coronaviruses, bringing the total to about 20.57 million disease records.

The country’s fiscal and political risks, together with a more cautious global scenario, create an adverse outlook for local investments, as investors opt for more security, with inflation and the high dollar and a lower Ibovespa, despite good fundamentals of companies.

Calculations by economist Livio Ribeiro, from Ibre/FGV, indicate that based on Brazil’s economic fundamentals, especially balanced external accounts, the US currency could be worth R$4.20, almost 30% less than the range of the current R$ 5.30/R$ 5.40, according to Folha de S. Paulo.

However, local instability makes exporting companies choose to keep the dollar abroad, as well as motivating the departure of foreign investors, who in the last 12 months have withdrawn almost US$ 70 billion from the country.

The higher dollar directly affects the increase in inflation, via the import of products and commodities quoted in dollars, such as oil and animal protein. Higher prices force the Central Bank to raise interest rates, making the national debt more expensive, and to attract investors willing to finance it, it is necessary to raise interest rates even more, creating a vicious cycle.

News of the day

Focus Bulletin – In the report released today by the Central Bank, the experts consulted raised the estimates for the IPCA this year from 7.05% to 7.11%, while 4 weeks ago they were at 6.56%. The 2021 GDP estimates went from 5.28% to 5.27%. The Selic rate projection remained at 7.50% for the end of this year, against 7% four weeks ago. Against the dollar, bets remain held at R$ 5.10 for the third week in a row.

BR of the Sea – On Friday, the 20th, the Administrative Council for Economic Defense (Cade) reinforced the suggestions for adjustment to the text of the coastal shipping incentive program, currently under discussion in the Senate, to avoid favoring large companies in the sector, in particular with the flexibility of chartering foreign vessels for cabotage.

Squid – The Federal Court of Brasília rejected the request to reopen the process related to the Atibaia site, which involved former president Luiz Inácio Lula da Silva.

Paulo Guedes – Economy Minister Paulo Guedes said that political clashes are overshadowing positive news on the economic front, such as activity growth and the prospect of a much smaller primary deficit next year. According to Guedes, the deficit in 2022 will fall to 0.3% of the Gross Domestic Product (GDP), compared to 1.7% this year.

Bruno Funchal – The Special Secretary for the Treasury and Budget, Bruno Funchal, stated that many of the doubts, discomforts and uncertainties of the market with the PEC dos Precatórios come from the proposal to create the fund that would be fed with the sale of Union assets.

Electoral Fund – After President Jair Bolsonaro vetoed the R$ 5.7 billion electoral fund, Congress mobilized to guarantee at least R$ 4 billion for the 2022 campaign. will be used to guarantee the amount desired by the Legislature.

agenda of the day

Jair Bolsonaro – Meeting with Bento Albuquerque, Minister of State for Mines and Energy; meeting with Onyx Lorenzoni, Minister of State for Labor and Welfare; meeting with Ciro Nogueira, Minister of State Chief of Staff of the Presidency of the Republic.

Paulo Guedes – Lunch with the president of the Central Bank, Roberto Campos Neto; Meeting with the Special Secretary of the Investment Partnership Program, Martha Seillier; Meeting with the Special Secretary of the Federal Revenue, Jose Tostes.

corporate news

Eztec (SA:) – Eztec’s board of directors has approved a repurchase program of up to 5.035 million shares of its own common stock. The term for the operation is six months, ending on February 23, 2022.

CCR (SA:) – CCR reported that total traffic grew 14.1% between August 13 and 19 since this year, compared to the same period last year. Without the ViaSul and ViaCosteira concessionaire, there was an increase of 5.8%. In the accumulated result for the year up to August 19, the movement increased by 16.8% (consolidated) and 11.6% (without ViaSul and Via Costeira).

Renner Stores (SA:) – Procon-SP notified Lojas Renner (SA:LREN3) asking for explanations about the cyber attack that the company suffered on Thursday, 19. The company must inform which databases were hit, what was the level of exposure, by which period the site was unavailable and if there was a leak of personal customer data and other strategic information until Wednesday, 25.

rappi – After noting a significant increase in purchases of pet products in its app, Rappi’s financial arm, RappiBank, intends to offer pet insurance as a way to expand its services.

Sabesp (SA:) – The governor of São Paulo, João Doria (PSDB), stated that Sabesp will be prepared to be privatized in the next few years, and that the government will not do anything rashly.