The Brazilian stock market experienced a notable upswing, driven by heavyweight companies. The Ibovespa index climbed back above 127,000 points, boosted by expectations of new stimulus measures in China.
This increase followed China’s decision to adjust its monetary policy stance to “properly loosen”. On Monday, December 9, the main Brazilian stock index rose 1.00%, closing at 127,210.19 points.
Meanwhile, the US dollar reached a new historic level against the Brazilian real, closing the session at R$6.0829, up 0.20%. Domestic investors remained risk-averse due to concerns about possible changes to the fiscal package during its passage through Congress.
The Focus Bulletin also revealed worsening forecasts for key economic indicators. Economists polled by the Central Bank raised their estimate of the Selic rate from 11.75% to 12% for this year.
With the current base interest rate at 11.25% per annum, the weekly report predicts an increase of 0.75 percentage points at the next meeting. Shares of Vale (VALE3) led the positive side of the index, rising despite no corporate news.
The mining company’s shares rose as iron ore prices advanced more than 1% on the Dalian stock exchange. China announced that it will adopt an “appropriately loose” monetary policy next year to support economic growth.
Market movements amid economic changes
This marks the first shift toward “liberation” since 2010. The Chinese government also promised measures to stabilize the stock and real estate markets.
Even Petrobras (PETR4; PETR3) closed with a gain of over 2%, following the performance of oil prices. On the downside, Cogna (COGN3), Petz (PETZ3) and Localiza (RENT3) were pressured by the rising yield curve.
In the United States, Wall Street indexes retreated from record highs as technology stocks fell sharply. Investors await new US inflation data, with the Consumer Price Index (CPI) for November expected to show a slight increase in price pressures.
The S&P 500 fell 0.61% to 6,052.85 points, the Dow Jones fell 0.54% to 44,401.93 points and the Nasdaq fell 0.62% to 19,736.69 points. These movements reflect the market’s cautious stance ahead of key economic data and central bank decisions.
