Ibovespa, Brazil’s main stock index, fell 0.04% on December 4, closing at 126,087 points. This slight decline reflected investor concerns over possible leadership changes at Petrobras.
It also stemmed from Finance Minister Fernando Haddad’s defense of the government’s fiscal measures. Meanwhile, the Brazilian real strengthened slightly, with the dollar closing at R$6.0457 (-0.21%).
Haddad addressed criticism of the fiscal package announced last week, asserting that spending control measures were appropriate and rejecting claims that they were insufficient.
His remarks came as market speculation grew around next week’s interest rate decision. The probability of a 100 basis point increase in the Selic rate increased to 44%, from 25% a day earlier. Meanwhile, the odds of a smaller 75 basis point increase fell to 56%.
Selic’s current rate stands at 11.25%. Petrobras shares drew attention after reports suggested Pietro Mendes, chairman of the board, could step down. He is expected to join the National Oil Agency (ANP).
Bruno Moretti, a current board member and government official, is expected to replace him. This uncertainty affected the performance of the company’s shares.
Elsewhere on Ibovespa, Vale shares fell despite a rise in iron ore prices in China as investors processed updates from its annual “Vale Day” event. On a brighter note, LWSA shares rose over 8%, boosted by strong Black Friday sales data.
Globally, US markets hit record highs as tech stocks rallied. The ADP report showed private sector job growth slowed to 146,000 in November but remained solid ahead of Friday’s release of official employment data.
Federal Reserve Chairman Jerome Powell signaled a cautious approach to future interest rate cuts, reflecting confidence in the US economy.
This story highlights how domestic policy debates and corporate developments in Brazil intersect with global market trends, shaping investor sentiment and driving financial decisions.
