Against the foreign trend, Ibovespa drops 0.49%, to 117,471.67 points Per Estadão Content

© Reuters. Against the outside world, Ibovespa drops 0.49%, to 117,471.67 points

With BRL 5.40 at the maximum of the day, the company was once again unable to take a ride from abroad, with the ebb of global risk aversion leading to new intraday historical highs – a renewed peak also at the close of the technology index -, in positive session early on in the European and Asian markets.

Reflecting internal factors, still associated with the outlook for the fiscal amid the worsening political and institutional crisis, the benchmark index of the B3 (SA:) dropped 0.49%, to 117,471.67 points, between a low of 117,062.04 and maximum of 118,445.18, leaving the opening at 118,052.54 points this Monday. In the year, it now accumulates a loss of 1.30%, dropping 3.55% in August. The financial turnover was R$ 30.8 billion in the session.

“Markets abroad have been excited, with a high since the Asian session, after the Chinese government informed there have been no new cases of coronaviruses in the country. Among the commodities, a major highlight was the recovery in prices for . The most awaited event of the week will come on Friday, with the annual meeting of Jackson Hole, of the Federal Reserve,” says Bruno Madruga, head of variable income at Monte Bravo Investimentos.

In China, it was the first time since July that there was no local case of covid-19, “which shows a possible stability in the outbreak of the disease”, says Túlio Nunes, finance specialist at Toro Investimentos, also drawing attention in the country , for “advances in the approvals of economic opening, after controversies regarding regulation”.

{{news-908661||READ MORE: Stock market must undergo one more “maturity test”, says SulAmérica’s CIO}}

On Monday, with an increase above 5% for the and WTI, the positive performance of Petrobras (SA:) (ON +3.35%, PN +1.58%), as well as of the shares of large banks (Santander (SA::) ) +1.34%, Itaú (SA:) PN +1.07%), contributed to avoid a stronger correction in the Ibovespa against the foreign trend. On the negative end of the Ibovespa, the highlight was the fall of 6.08% in Lojas Americanas (SA:), ahead of Americanas ON (SA:) (-4.25%) and Eneva (SA:) (-4.21 %). On the opposite side, Embraer (SA:) rose 5.28%, CVC (SA:), 4.39%, and PetroRio (SA:), 3.61%.

Here, the government’s political weakening keeps the market on the fiscal defensive, amid a controversial IR reform – with voting rescheduled for this week in the House, after postponements – and the formation, today, of a front of governors against perceived threats to democracy.

This Monday, the governor of São Paulo, João Doria, dismissed a commander of the Military Police out of sympathy for the appeals for insurgency, a factor that should gain relevance as September 7th approaches, especially strained this year by the intensification of the dispute between President Bolsonaro and the Judiciary Summit. “Local investors are focusing on the crisis of confidence installed by President Jair Bolsonaro and on fears of worsening public accounts with the elections next year,” notes the analysis team at Terra Investimentos.

“The exchange rate is pricing the political risk, the fiscal risk much more. If these risks are mitigated, which is not very visible at the moment, the exchange rate would tend to appreciate a little, but for now the scenario is still in more difficult phase. We are at an inflection point, a ‘turning point’ in the economic scenario: that scenario that was expected for greater growth, especially in the fourth quarter, still exists, but is losing intensity”, says Nicola Tingas, chief economist of Acrefi (National Association of Credit, Financing and Investment Institutions).

Participating in an event this Monday, the Minister of Economy, Paulo Guedes, acknowledged that the environment of anticipation of elections harms the economy, causing a lot of noise, but no basis, according to him, indicates that the country is out of control. “I hope that excesses from one side or the other are moderated. We need to moderate the excesses to ensure the economic recovery, which is practically guaranteed. Much has been said about the deficit, about the possibility of fiscal loss of control, but the fundamentals continue to indicate that we are doing this the right job,” said the minister.