Ibovespa Dips as Brazil Awaits Fiscal Package

The Brazilian stock market experienced a day of fluctuations as investors remained cautious, awaiting the announcement of a new fiscal package.

The Ibovespa, Brazil’s main stock index, briefly dipped below 126,000 points during trading hours. However, gains in Petrobras shares and positive movements in New York markets helped limit the index’s losses.

By the end of the trading day, the Ibovespa closed at 126,922.11 points, down 0.99%. The US dollar strengthened against the Brazilian real, ending at R$ 5.8115, a 0.77% increase.

This exchange rate translates to approximately $1 for every R$ 5.70. Investors continued to focus on the domestic scenario, particularly the anticipated fiscal package.

Rui Costa, the Chief of Staff, mentioned in a GloboNews interview that the package’s draft is expected to be finalized this week. However, President Luiz Inácio Lula da Silva will determine the announcement date.

Ibovespa Dips as Brazil Awaits Fiscal Package. (Photo Internet reproduction)

In other economic news, federal government revenue in October showed a real increase of 9.77% compared to the same month last year. The total revenue reached R$ 247.92 billion ($43.49 billion), marking the best result for October since records began in 1995.

Mixed Stock Market Performance Amid Global Tensions

The stock market saw mixed performances among individual companies. Americanas shares fell over 15% during the session, giving back gains from the previous three sessions.

Despite this decline, the stock still boasts a monthly gain exceeding 100%. Embraer was among the top performers in the Ibovespa, recovering from the previous session’s losses.

Klabin also stood out after BTG Pactual upgraded its recommendation from neutral to buy, setting a new target price of R$ 30 ($5.26). On the downside, cyclical stocks faced pressure due to rising future interest rates.

Lojas Renner, Cogna, and Hapvida were among the biggest losers. Vale shares remained relatively stable, while Petrobras advanced on higher oil prices and expectations for the approval of its 2025-2029 Strategic Plan.

In the United States, investors reacted to new labor market data. Unemployment claims fell by 6,000 to 213,000 in the week ending November 16, contrary to analysts’ expectations of an increase to 220,000.

Nvidia’s third-quarter earnings report also drew attention. Despite a 109% year-over-year increase in net income to $19.31 billion ($3.39 billion), analysts expressed concern over the 44% rise in operating costs and a 0.50 percentage point drop in gross margin.

The US stock markets closed mixed, with the S&P 500 and Dow Jones showing gains while the Nasdaq remained relatively flat. As global tensions persist, investors continue to monitor the situation between Ukraine and Russia.