Ibovespa retreats with profit taking after strong US inflation data By Reuters



By Paula Arend Laier

SAO PAULO (Reuters) – The index retreated on Tuesday, after three highs in a row, with a stronger-than-expected inflation data in the United States endorsing profit-taking movements in the Brazilian trading session.

At 11:43, the Ibovespa dropped 1.09%, to 112,171.35 points, after advancing more than 3% in the last three sessions. The financial volume totaled 8 billion reais.

According to the US Labor Department, the US consumer price index (CPI) rose 0.1% in August, as economists polled by Reuters had forecast a 0.1% drop.

Excluding the volatile food and energy components, the CPI rose 0.6% in August, after increasing 0.3% in July.

For manager Daniel Alberini, a partner at CTM Investimentos, in addition to the main data, other internal measures of the CPI also showed a still bad picture, suggesting that the Federal Reserve will have a big job ahead.

“And the more interest rates in the US, the more complex it gets for the rest of the world, because of the flow of money migrating there, because of risk, because of volatility…”, he said.

On Wall Street, it was down 3%.

The central bank meets on September 20 and 21 to decide on interest rates in the US. Expectations point to an increase of 0.75 percentage point, which would raise the rate to between 3% and 3.25%.

HIGHLIGHTS

– VALE ON (BVMF:) had a negative variation of 0.07%, at 70.1 reais, despite the 2% rise in the most traded futures contract in Dalian, China.

PETROBRAS PN (BVMF:) retreated 2.15%, at 30.9 reais, in a session of weakness in the external market, where it yielded 0.86%, at 93.19 dollars.

– LOCAWEB ON lost 5.88%, at 9.12 reais, also on correction day, given the more selling bias on the stock exchange. The day before, the paper rose 4.5%.

– NATURA&CO ON fell 4.89%, at 16.13 reais, after advancing almost 15% in the last three trading sessions, amid the general adjustment in consumer stocks in the Brazilian trading session.

– ITAÚ UNIBANCO PN (BVMF:) was down 0.41% at 26.96 reais, and BRADESCO PN (BVMF:) was down 0.66% at 19.5 reais.

– MRV ON (BVMF:) advanced 1.39%, at 12.38 reais, hitting the fourth high in a row, in the face of favorable prospects for construction companies with a focus on low income. The paper is one of Itaú BBA’s favorites in the sector.

(By Paula Arend Laier; edited by André Romani)

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