Ibovespa closes at a high of 1.4% and reaches its highest level since September 1; dollar falls to R $ 5.59

SÃO PAULO – The Ibovespa closed higher on Thursday (22), a session marked by a lot of volatility due to investors’ anxiety about the news about the US stimulus package. After climbing and resetting several times until the beginning of the afternoon, the index remained in the positive zone thanks to the improvement of the mood also in the international arena.

Today, the Dow Jones, S&P 500 and Nasdaq indices rose 0.54%, 0.52% and 0.19% respectively thanks to statements by the Speaker of the US House of Representatives, Nancy Pelosi. He said the agreement for the stimulus program “is almost there” and that “a serious attempt has been made to make it work.”

At the beginning of the pandemic, the United States spent $ 3 trillion to address the economic impacts of Covid-19. In recent weeks, the Donald Trump administration has proposed releasing an additional $ 1.9 trillion this time. However, the most recent proposal for representatives of the Democratic Party, which has a majority in Congress, is around $ 2.2 trillion.

With the news, the Ibovespa rose 1.36% to 101,917 points, its highest closing level since September 1, when it closed the session trading at 102,167 points. The financial volume traded was R $ 28,184 billion.

Those who made the purchases were Petrobras shares (PETR3; PETR4) and the banks. Financial institutions continued to reflect strong earnings projections in the third quarter, while the oil company benefited from the appreciation of the commodity in the international market.

The Brent barrel – used as a reference by the state company – rose 1.75% to US $ 42.46 and the WTI barrel showed gains of 1.62% to US $ 40.68. To see more featured stocks, click here.

In national politics, he continued to focus on the deployment of President Jair Bolsonaro’s (non-party) speech on Wednesday on Twitter when he overruled Health Minister Eduardo Pazuello. The general had announced an agreement to buy vaccines that will be produced in São Paulo by the Butantan Institute in association with the Chinese company Sinovac.

Today, Bolsonaro said that Brazil will not buy the CoronaVac vaccine because the drug does not convey security “because of its origin” and has no credibility.

Meanwhile, the commercial dollar fell 0.36% to R $ 5,593 in the purchase and R $ 5,594 in the sale. The future dollar maturing in November registered a fall of 0.22%, to R $ 5,598 in the Secondary market.

In the future interest market, the ID of January 2022 rose two basis points to 3.26%, the ID of January 2023 increased five basis points to 4.63%, the ID of January 2025 advanced five basis points in 6.43% and the DI of January 2027 registered a positive variation of seven basis points at 7.35%.

Also on the radar, US National Intelligence Director John Ratcliffe told a news conference that “Iran and Russia have taken specific actions to influence public opinion regarding the elections.”

Both countries obtained separate information on US voters. According to Ratcliffe, the data can be used to try to communicate false information to voters, in an attempt to cause confusion and chaos, undermining trust in American democracy.

On Thursday, the Kremlin denied US allegations that it attempted to interfere in this year’s US presidential elections, calling them unfounded.

Bolsonaro criticizes the Chinese vaccine

On Wednesday, President Jair Bolsonaro (without a party) dismissed the speech of the Minister of Health, General Eduardo Pazuello, who announced the purchase of 46 million doses of the vaccine. On Twitter, Bolsonaro wrote in capital letters that the vaccine “WILL NOT BE PURCHASED.”

He responded to a netizen who said he wanted to have “a future, but without interference from the Chinese dictatorship.” Another netizen said that Pazuello had betrayed him with the agreement, and Bolsonaro replied that “everything that is published without proof becomes BETRAYAL.”

On Tuesday (20), at a meeting of the Governors’ Forum, Minister Pazuello had announced that he had signed a protocol of intent to purchase 46 million doses of the Sinovac vaccine. At the time, the minister referred to the vaccine as “the Brazilian vaccine.”

The speech temporarily dispelled fears on the part of state health secretaries and health ministry technicians that the federal government would relegate the Chinese vaccine for political reasons.

The governor of São Paulo, João Doria (PSDB), is considered a potential presidential candidate for the 2022 elections, and his stance to combat the coronavirus contradicts what the President of the Republic has preached since the beginning of the pandemic.

Although Bolsonaro ruled out the Chinese vaccine in his tweets, the Ministry did not break the deal to buy the coronavac, with an estimated value of R $ 1.9 billion.

Another point of disagreement is over the mandatory vaccine. Doria says that vaccination will be mandatory in São Paulo, Bolsonaro says it will not be mandatory at the federal level.

The Sinovac vaccine is in the third and final phase of testing. The federal government is also testing the vaccine from the pharmaceutical company AstraZeneca in Brazil in partnership with the University of Oxford in the UK. It is also in the final testing phase and should be produced in Brazil by Fiocruz in Manguinhos, in Rio de Janeiro.

The government must also buy the vaccine produced by the Covax Facility (Covid-19 Global Vaccine Access Instrument), a global consortium that has been developing 9 different vaccines, to which Brazil will have access.

On October 18, the Ministry of Health reported that it paid R $ 830.9 million to join the Covax Facility. In total, the government announced the purchase of 186 million vaccines for the first half of 2021.

After the presidential tweets, Doria said on Wednesday night that the governors intend to wait at least until Friday (23) to take any action on the president’s decision. He would have the support of state health secretaries, Doria said it is possible to take the matter to the Federal Supreme Court.

Vote for vetoes

The president of the Senate, Davi Alcolumbre (DEM-RJ), said that he will govern all presidential vetoes pending analysis in the November 4 session.

Among them, there will be vetoes for the extension of the payroll tax exemption and extracts from the New Legal Framework for Sanitation.

“The vote in the Congress session provides for the vote on the exemption veto. I intend to put all the pending bills of the National Congress on the agenda and all the vetoes, ”he said. “I hope we get the correct number both in the House and in the Senate to begin the session of Congress,” he said Wednesday night, 21, leaving plenary.

Corporate radar

Oil company Enauta is taking advantage of the slowdown in the sector to buy fields on land and on the Brazilian coast. JBS approved the raising of R $ 2 billion in debentures for the purchase of livestock.

The Eletrobras meeting approved Eletronuclear’s capital increase of R $ 1.88 billion in the quarter. Credit Suisse started this fifth Vitru hedge, with a neutral assessment (earnings in line with the market average).

Higher highs

Higher number of casualties

The Federal Police are investigating an alleged fraud in Infraero that involves the tendering of commercial areas in Congonhas and Santos Dumont. The recipients are public agents linked to Infraero and entrepreneurs. Frauds could have reached R $ 10 million, between 2016 and 2018. Oleoplan, a biodiesel manufacturer, requested in the fourth registration to carry out its initial public offering of shares.

(With Bloomberg and Agência Estado)

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