The Ibovespa rose sharply again this Friday (14th) operating once again in the opposite direction of international markets. In a session marked by positive retail indicators in Brazil and weak in the United States, the stock market rose with the support of blue chips and companies in the financial sector, which were among the biggest increases of the day. The Ibovespa closed up 1.33%, at 106,927 points, above 107,000 at the day’s high. The volume traded in the session was R$ 25.9 billion.
Read more: Goldman Sachs outlines perspectives for Brazilian bank balance sheets
In the week, the Stock Exchange rose 4.09% and managed to recover everything it had lost throughout the year, accumulating, so far, a positive balance in 2022. And that was not all: the Ibovespa had the best week since March 2021 .
For Alexandre Brito, partner and manager of Finacap Investimentos, prices on the stock exchange seem to be converging towards fair value. “The Brazilian market is still very discounted. Even with this increase in the week, it has not yet been possible to recover from the fall in the second half of last year and, for foreign investors, we are still cheap”, he says.
However, Brito says it is still too early to say that the Ibovespa’s upward movement is a trend. “We see measures that could restrict economic activity [em função do aumento de casos de Covid-19], and the consumer sector may suffer from a short-term impact. But it is possible that they are not as restrictive as those at the beginning of the pandemic”, he says.
Read more: Despite the surprising data, retail should continue to be affected by inflation and high interest rates
The yield curve operated with little variation and ended Friday with an upward bias. In the extended session, DI for January 2023 was up one basis points to 11.95%; contracts for January 2025 rose six basis points to 11.26%; and contracts maturing in January 2027 advanced two basis points to 11.18%.
The dollar, in another session of volatility, fell again. The American currency ended the session down 0.29%, at BRL 5.512 on purchase and BRL 5.513 on sale. In the week, the dollar retreated 2.1%.
The New York Stock Exchanges also accumulate losses in the week and today was another strong day of oscillation. The indices operated lower throughout the day, but recovered some steam at the end of the session. Impacted by the fall in bank shares, the Dow Jones closed down 0.56%, at 35,911 points; the S&P 500 closed slightly up 0.08% at 4,662 points; and Nasdaq closed up 0.59% at 14,893 points.
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US retail sales in December thwarted consensus, falling 1.9%, compared with expectations for a 0.1% drop. In addition, industrial production in the same month also frustrated by falling 0.1%, compared with projections for a high of 0.3%, as well as consumer confidence for January, which came, according to the University of Michigan, with a reading of 65. .9, compared to a consensus of 66.5.
Throughout the week, US stock markets reflected the prospect of interest rate hikes in the United States in 2022, according to statements made by Federal Reserve officials.
European stocks closed negative once again, following world markets in the face of the Fed’s nods to monetary tightening.
- Euro Stoxx 600: -1.04%
- DAX (Frankfurt): -0.95%
- FTSE 100 (London): -0.30%
- CAC 40 (Paris): -0.81%
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