Ibovespa collides with Wall Street, closes high and renews the highest score in 11 months

SÃO PAULO – The end-of-year rally seen in international stock markets earlier this Tuesday (29) did not last all day. Wall Street stocks fell in the afternoon and affected the performance of the main world stock indices.

Here in Brazil, the Ibovespa reached its highest all-time intraday score early in the morning (119,860 points), but lost its breath on the US turn and ended the day up just 0.24%, at 119,409 points.

Still, he renewed his highest closing score since January 23 of this year, when he finished with 119,527 points. The previous intraday record for the index was 119,593 points, set on January 24 of this year.

The financial volume handled today in B3, of R $ 20 billion, was lower than the annual average and in December, around R $ 30 billion. “We do not have great news in Brazil today, so we end up receiving more hostages than those who come from abroad,” says Jorge Junqueira, partner of the manager Gauss Capital.

“The volumes are also lower. Itaú’s stock, for example, [um dos papéis com maior peso no Ibovespa] it traded half the volume of the historical average in the last two days ”, added Junqueira.

In the exchange rate, the commercial dollar closed the day with a fall of 1.056%, to R $ 5.1824 in the purchase and R $ 5.1829 in the sale. With that, it returned the rise of just over 1% seen yesterday. The US dollar maturing in January 2021, on the other hand, fell 0.72% to R $ 5,202. The Central Bank held a swap auction of $ 800 million.

The focus of the market today remains in the United States, where there is an impasse in relation to the amount of emergency aid paid to Americans due to the Covid-19 pandemic. Yesterday, President Donald Trump signed a $ 900 billion economic stimulus package.

He had been slow to sign the package because one of the points called for $ 600 to be paid to people making up to $ 75,000 a year in the country, and Trump wanted the aid to be raised to $ 2,000 per person.

Also yesterday, the U.S. House of Representatives approved an increase in federal payments to Americans who earn up to $ 75,000 a year, from $ 600 to $ 2,000 per person. The Senate began to discuss the issue, but it will be more difficult to reach a consensus on the amount of aid.

According to Reuters, US Senate Majority Leader Mitch McConnell postponed the vote on President Donald Trump’s request to increase aid controls for US citizens and urged the Senate to overturn Trump’s veto on a defense bill, in a rare challenge to his Republican counterpart three weeks before Trump left the White House.

McConnell acted shortly after Trump attacked Republican leaders on Twitter, calling them “weak” and “tired” in an apparent effort to get the Senate to increase the value of the checks from $ 600 to $ 2,000 and support his veto. defense project.

After McConnell spearheaded the start of a rare year-end session in the Senate, Trump said on Twitter that the Senate should pass larger payments as soon as possible, “unless the Republicans have a death wish.”

McConnell, the Senate’s top Republican, blocked immediate consideration of a measure to increase payments, aimed at providing relief to families affected by the pandemic, suggesting that the Senate would begin to examine the issue with two others that Trump raised: integrity. of the elections. and limits to large technology companies.

The United States Senate is expected to vote later this week on the amount of government financial aid to Americans in 2021.

In Europe, major indices posted a rebound as the Brexit trade deal, hopes for an expanded stimulus package in the United States, and the eurozone’s marathon of the Covid-19 vaccination campaign bring a less bleak scenario for prospects for global growth by 2021.

The highlight was on London’s account, on the return of a holiday yesterday, with whom he only reacted today to the news of the trade agreement between the United Kingdom and the European Union in Brexit.

Still on the radar of the markets, China and the European Union should close an investment agreement this week that will provide companies from the European bloc with much better access to the Chinese market and protection for their assets in the Asian country, he said on Monday 28 , a higher authority of the EU. Negotiations began in 2014 but were stalled for years as the EU complained that China was not delivering on its promises to lift restrictions on the bloc’s investments.

Asian stock exchanges closed with results in different directions. The highlight is Japan’s Nikkei index, which reached levels not seen since August 1990, according to data from consultancy Refinitiv.

Returning to the Brazilian news, unemployment in Brazil rose to 14.3% in the quarter ended in October, according to data from the National Continuous Monthly Household Survey (PNAD Continua), published on Tuesday (29) by the Brazilian Institute of Geography . and Statistics (IBGE). The number was better than expected. The expectation, according to the Refinitiv consensus, was up 14.7%, compared to the previous September figure of 14.6% (see more by clicking here).

However, compared to the quarter ended in July, the result was much higher than the rate of 13.8% seen previously. The data showed that the country began the fourth quarter with an increase in the number of unemployed due to the greater demand for employment, but at the same time it showed an increase in the employed population, showing a recovery in the labor market.

In the news about vaccines, the National Health Surveillance Agency (Anvisa) granted this Monday the certificate of good manufacturing practices to the Pfizer laboratory, a necessary step for the registration of the Covid-19 vaccine developed by the laboratory in the country.

Pfizer, which developed a vaccine in association with the German company BioNTech, is the third manufacturer of vaccines against Covid-19 to receive the certificate of good practice aimed at registering the immunizer in the country. The first was the Chinese Sinovac and the second, AstraZeneca.

Extension of the state of calamity and dispute by the Chamber

This Tuesday, Caixa Econômica Federal (CEF) paid the last installment of Emergency Aid to 3.2 million people, ending the program’s payment schedule, without any indication of a possible new aid in 2021 or the launch of a new one. social program or substitute for Bolsa Família.

According to a report published in the newspaper Valor, the governors of the Northeast region defend the extension of the state of public calamity for Brazil at least for the first half of 2021.

The governor of Piauí, Wellington Dias (PT), leader of the group of governors of the region, said that “nobody wants and nobody wants, but the calamity is a reality.” The catastrophic state suspended the application of fiscal control mechanisms, such as the spending cap, and will allow the federal government to continue spending on programs such as emergency aid.

In addition, the cover article published by the newspaper O Globo establishes that the block articulated by the current president of the Chamber of Deputies, Rodrigo Maia (DEM-RJ) to elect a successor must be able to guarantee the two most important positions on the Board of Directors of the PT. and PSL, which have the largest banks.

With the support of left-wing parties, the bloc has 281 deputies and closes around the candidacy of Baleia Rossi (MDB-SP). On the other hand, candidate Arthur Lira (PP-AL) has the support of President Jair Bolsonaro (no party), and has 181 parliamentarians.

As the vote is secret, there is room for betrayal, and the formation of a larger bloc does not guarantee the election of the president of the Chamber of Deputies. But the posts are distributed according to the size of the captions before the elections. For every 46 deputies, one block has the right to one seat on the Table. The largest group chooses the first position, and the second largest makes the second option, which leaves PT and PSL in prominence.

On Monday, Bolsonaro publicly declared his support for Lira’s candidacy and opposed Maia. “Now we are going to have elections in the Chamber. One of the boards is Rodrigo Maia and PT, PCdoB and PSOL. And there is another plate. I’m on this. I won’t even argue. If PT, PCdoB and Rodrigo Maia are on one side, I am on the other ”, he said. The group also includes DEM, de Maia, MDB, PSDB, Citizenship, PV and part of the PSL without scholarships. PSOL is not part of the front and is considering launching its own app.

Lira united around his name the parliamentarians most allied with the government and also the so-called Centrão, which includes parties such as PP, PTB, PSD, PL, Republicans, among others, and obtained the explicit support of Bolsonaro.

In addition, the opposition parties presented to the deputy Baleia Rossi (MDB-SP), candidate for mayor, a letter of commitment in which they point out the need to respect democratic principles and the constitutional space for him to exercise his role, reported the The leader of PSB, Alessandro Molon (RJ), to the international news agency Reuters.

According to Molon, Baleia would have agreed with the letter, which undergoes final editorial adjustments to be released. Among the issues that would allow the opposition to carry out its activities, there is the candidate for the presidency of the Chamber to listen to him to define the agenda, to discuss matters such as the convocation of ministers, when there are votes and the agenda. Draft Legislative Decrees (PDL), instruments widely used to annul executive decrees.

Corporate radar

Highlighted on the company’s radar, Petrobras filed a request for arbitration last Monday with a claim for compensation against Odebrecht, estimated at approximately R $ 800 million, for alleged violation of the terms of the shareholders’ agreement referred to Braskem.

Higher highs

Higher number of casualties

Santander Brasil’s board of directors approved the payment of a gross amount of R $ 665 million, which amounts to R $ 565.2 million after deducting the amount of income tax at source.

Also on the market radar, EDP Brasil signed an investment agreement in the distributed solar generation company Blue Sol, with the aim of acquiring a minority stake of up to 40% of the company’s capital stock. CCR, in turn, signed an addendum to the concession contract for the Confins airport (MG), through which it may receive up to R $ 352 million, the company reported in a statement to the market.

(With Reuters, Bloomberg and Agência Estado)

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