Ibovespa closes up 0.47%, at 113,557 points, with Vale (VALE3) and meatpackers; dollar advances 0.96%

The Ibovespa closed up 0.47% this Tuesday (16), at 113,557 points. The main index of the Brazilian stock exchange followed, in part, the performance of the benchmarks Americans, but it was also helped by the advance of protein companies and the mining company (VALE3). VALE3 advanced 2.42%, to R$ 69.95, recovering after the drop of more than 2% the day before, despite the weakness of iron ore prices in Asia in the session.

In New York, the Dow Jones and S&P 500 rose 0.71% and 0.19%, respectively. The Nasdaq, however, fell 0.19% to 13,102 points.

According to comments, investors are positioning themselves with some caution, awaiting the publication of the minutes of the Federal Open Market Committee (FOMC), scheduled for tomorrow.

“We have seen expectations of lower inflation in the United States, with a lively market with data from July, but so far without major changes”, explained André Luzbel, head of equity at SVN Investimentos. “The US continues with negative real interest rates and high inflation. It is necessary to see the Fed’s next steps.”

You treasuries maturing in ten years, over there, closed with a rise of two basis points, to 2.811%.

On the other hand, investors continue to pass on negative data, fearing a global recession. Still in the United States, new home construction in July came in at 1.44 million, compared to 1.54 million expected and down 9.6% on a monthly basis.

The DXY, an index that measures the strength of the dollar against other currencies of developed countries, closed stable. Against the real, however, the American currency advanced 0.96%, trading at R$ 5.140 in the purchase and at R$ 5.141 in the sale.

The Brazilian currency suffers more from the perspective of low global growth, as well as other emerging ones. In addition, the currency was impacted by the decline in commodities, for the same reason. Brent crude fell 2.90% to $92.34 a barrel. Iron ore fell 0.28% to $106.60 at the Dalian port in China.

“Ibovespa was pulled by the US, which has been reflecting an improvement in the scenario regarding monetary policy. The decline in inflation and commodities leads investors to see a possibility of a weaker interest rate hike”, says Heitor Martins, specialist in Variable Income at Nexgen Capital.

The dollar’s advance helped boost shares of protein companies, which profit more from a higher dollar. Common shares advanced (BRFS3) rose 6.53%, JBS (JBSS3), 4.89% and Marfrig (MRFG3), 4.78%.

Among the drops, the highlights were Yduqs common shares (YDUQ3), which fell 11.76% after the balance sheet. Méliuz (CASH3) and PetroRio (PRIO3) dropped, respectively, 9.80% and 3.99%.

The Brazilian yield curve operates in the post-market without exact direction. DIs for 2023 had rates retreating one basis point, to 13.72%. Those for 2025, however, rose five points to 11.69%. The DIs for 2027 and 2029 advance, in sequence, by three and one points, going to 11.40% and 11.57%.

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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