Ibovespa closes down on external caution ahead of Powell and domestic concerns – Money Times

Ibovespa
Reference index of the Brazilian stock exchange, the Ibovespa fell 1.73%, to 118,723.97 points (Image: REUTERS/Amanda Perobelli)

O Ibovespa (IBOV) closed on a fall this Thursday, without support from overseas markets, where caution prevailed ahead of a long-awaited speech by the central bank’s USA, Jerome Powell, while in the Brazil concerns about political-institutional tension and fiscal risks follow.

Reference index of the Brazilian stock exchange, the Ibovespa fell 1.73%, to 118,723.97 points, after closing high in the two previous trading sessions, a period in which it accumulated a gain of 2.85%. The financial volume of the session totaled around 27 billion reais.

Investors are awaiting Federal Reserve chairman Powell’s speech at the Jackson Hole symposium, looking for clues as to when the Fed will begin scaling back asset purchases after its latest policy minutes suggest the move could start this year.

On Thursday, the Kansas City Fed chairman said the US BC should start reducing its monthly bond purchases “as soon as possible,” while the Dallas Fed chairman said the US was still on track to cut stimulus in october or “soon after“.

According to the partner at Monte Bravo Investimentos Rodrigo Franchini, the market is waiting for the speeches at the event in Jackson Hole, especially Powell, to understand the next steps of the US monetary policy.

Meanwhile, there are doubts about the economic scenario in Brazil, both from a monetary, budget and fiscal point of view, as well as political issues and the tension between the Powers, which end up affecting risk appetite, said the executive.

Highlights

Itaú Unibanco (ITUB4) retreated 2.42% and Bradesco (BBDC4) lost 1.92%, while Interbank (BIDI11) advanced 4.56% against the backdrop of Nubank’s plans to make an IPO in the US seeking market value of more than 55 billion dollars.

Valley (VALLEY3) fell 1.28%, despite the rise in iron ore prices in China, with the mining and steel sector on the Ibovespa having predominantly negative performance.

Usiminas (USIM5) had the worst performance, closing down 3.46%.

Petrobras (PETR4) retreated 0.87%, weakened by the decline in oil prices abroad. On Friday, the company holds a shareholders’ meeting to elect members for the board of directors, in addition to the chairman of the board and a member of the fiscal council.

Cyrela (CYRE3) yielded 5.94% on the day of adjustment, after the shares had risen in the last two sessions, accumulating an increase of 16.7% in the period. The real estate index, which also includes shopping center stocks, fell 3.7%, the worst performance among the B3 sector indexes.

American stores (LAME4) and American (AMER3) rose 2.41% and 1.91%, respectively, amid correction movements, as they accumulate drops of around 16% and 12% in August, still suffering from adjustments related to the merger of assets of Lojas Americanas with the then B2W and quarterly balance sheet.

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