Ibovespa closes the first trading session of the year in autumn with the advance of the coronavirus and the blockade in England; dollar rises to R $ 5.26

SÃO PAULO – Ibovespa closed on Monday (4), the first trading day of the year, after having renewed the intraday historical maximum at the beginning of the session. The performance of international stock markets weighed heavily on a day of concern about the advance of the coronavirus, which culminated with the announcement of a lockdown in England.

In the late afternoon, British Prime Minister Boris Johnson said that the population of the country will not be able to leave home except to buy basic necessities, work when the home office is impossible, exercise or go to the doctor.

Johns Hopkins University has revealed that more than 20 million cases of Covid-19 have been reported in the United States. Globally, infections number 85 million. The data ended up driving sales on Wall Street, with the Dow Jones, S&P 500 and Nasdaq indices ending the session down 1.25%, 1.48% and 1.47%, respectively.

Here, banks negatively influenced the index. Itaú Unibanco (ITUB4), Bradesco (BBDC3; BBDC4) and Banco do Brasil (BBAS3) recorded losses between 2.3% and 3.2%. Together, the roles of these three institutions represent 15.7% of Ibovespa’s theoretical portfolio.

Those that helped limit losses were commodity-linked blue chips. Petrobras (PETR3; PETR4) rose 2% and Vale (VALE3) advanced 4.6%. Together, the shares of these companies account for 21.6% of the B3 main stock index. To see more featured stocks, click here.

The Ibovespa fell 0.14% to 118,854 points with a financial volume of R $ 30,327 billion. At today’s high, the Stock Market reached 120,353 points, beating the intraday historical record of December 30, when the benchmark index reached 120,149 points.

Meanwhile, the commercial dollar increased 1.53%, to R $ 5.2671 in the purchase and R $ 5.2681 in the sale. Dollar futures due in February rose 1.93% to R $ 5,297 in the secondary market.

In the future interest market, the DI of January 2022 fell four basis points to 2.82%, the DI of January 2023 fell two basis points to 4.18%, the DI of January 2025 registered a positive variation from one basis point to 5.66% and the ID of January 2027 fell three basis points to 6.40%.

Previously, scholarships increased due to continued vaccination against coronavirus in various countries around the world. There are already 51 countries that have begun to immunize their populations against the disease.

Still abroad, the main agenda is the revelations that US President Donald Trump pressured officials for a recount in Georgia, a state in which he lost the elections in 2020. The audio of the call was broadcast and generates a negative news cycle right now. decisive for the election of two seats in the Senate by the state, which takes place tomorrow.

A Democratic win had about a 30% chance, according to the betting markets. Predictit now values ​​Republicans with a 54% and Democrats with a 48% chance of controlling the House. [a soma não é 100% devido às regras dos sites de apostas]. In the House, as expected, Nancy Pelosi was elected to lead the House, now with a smaller lead for Democrats.

Focus report

The median expectation of financial market economists for Gross Domestic Product (GDP) in 2020 has been revised to a lesser retraction, showed the first Central Bank Focus Report of 2021. Last week, economists expected a fall of 4.4% . of GDP in 2020, the projection is now a contraction of 4.36%.

For 2021, the estimates were reduced from a growth of 3.49% to one of 3.40% in GDP.

In relation to the Comprehensive National Consumer Price Index (IPCA), the projection fluctuated from 4.39% to 4.38% in 2020. For 2021, the expectation was reduced from 3.34% to 3.32%.

Vaccination in Brazil

The consortium of press media that systematizes data on Covid collected by the Brazilian state health departments announced, at 8 pm (Brasilia time) on Sunday (3), the progress of the pandemic in 24 hours in the country .

The moving average of confirmed cases in 7 days was 35,810, 25% less than the period that ended 14 days earlier. In just one day, 17,252 cases were registered. The 7-day moving average of deaths was 698. As a result, there was a 9% drop compared to the moving average for the period ending 14 days earlier. In just one day, 287 deaths from Covid were recorded.

At the end of the year, the Foreign Trade Secretariat of the Ministry of Economy restricted the export of syringes and needles by Brazilian companies.

The products were included in the list of those that need a special license to be sold abroad, according to the legislation passed in April to guarantee essential supplies to deal with Covid.

The restriction was requested by the Ministry of Health to the Ministry of Economy on December 30 and became effective on January 1.

In the request, the Health portfolio mentions the auction held on December 29, when it managed to acquire only 2.4% of the syringes and needles that were destined for vaccination against Covid – 7.9 million, against the goal of 331 million.

The companies that participated in the auction stated that the public notice treated the syringes and needles as the same product and that the prices were below market prices.

However, there are doubts about the effectiveness of the measure. According to an estimate by Paulo Henrique Fraccaro, superintendent of Abimo (Brazilian Association of the Medical and Dental Equipment and Equipment Industry) reproduced by the portal G1Today, exports do not represent 10% of the total national production of syringes.

In addition, the National Sanitary Surveillance Agency (Anvisa) authorized Fiocruz to import two million doses of the immunizer produced by the association between AstraZeneca and the University of Oxford. The foundation conducts product tests in Brazil and will be responsible for their manufacture from imported supplies.

This Monday you must make the formal request for emergency use of the vaccine to Anvisa (National Health Surveillance Agency), which must analyze the request in ten days. Only then can vaccination begin, which according to Fiocruz expects to occur in January. The initial forecast was that it would start in February.

On Sunday ABCVAC (Brazilian Association of Vaccine Clinics), which groups together private clinics that offer vaccination, said that it is negotiating with the Indian laboratory Bharat Biotech the purchase of five million doses of its covid vaccine, Covaxin, which had the use of emergency approved by the Indian authorities the same day.

LDO sanctioned

On Thursday, President Jair Bolsonaro (without a party) sanctioned the Budget Guidelines Law, vetoing, among other things, a device that prevented limiting spending on actions related to the production and availability of vaccines against Covid-19 and immunization. of the population.

In justification of several vetoes, including the one related to vaccines, the government alleges that these items, because they are not subject to effort limitation, reduced “the fiscal space for discretionary expenditures, in addition to restricting the allocative efficiency of the Executive Power in implementing public politics “.

Among other forecasts, the LDO sanctioned by Bolsonaro projects a real growth of 3.2% of the Gross Domestic Product this year and an inflation measured by the IPCA also of 3.2%.

The LDO serves to guide the Annual Budget Act (LOA) that still needs, however, to be passed by Congress. Without the vote, the federal government opens 2021 without a budget. The expectation is that it will only be approved in February.

Until then, mandatory expenditures, such as the payment of salaries for public officials, will be guaranteed, but the government will have to work with the release of only 1/12 of the resources provided per month for discretionary expenses of the draft Budget Guidelines Law. 2021.

The budget should be around R $ 1.5 billion, but the Executive will be free to manage less than R $ 100 billion, since most of the resources are tied to mandatory expenses.

The turn of the year also marks the end of the period of public calamity, which prevents the government from spending above the spending ceiling. This has made it possible to adopt measures to deal with the pandemic, such as emergency aid, which is coming to an end.

However, on the radar, the newspaper Value highlights that the readjustment of the minimum wage to 2021, in line with the variation of the INPC from last year, should compress discretionary spending by around R $ 72 billion, which would imply the closure of the public sector this year

Corporate radar

The BB Seguridade board approved a capital increase in Brasilprev of up to R $ 1.2 billion, according to a relevant fact from the insurance and social welfare arm of Banco do Brasil to the Securities and Exchange Commission (CVM) on Wednesday. .

Higher highs

Higher number of casualties

Petrobras has already decided to reinstall Compass Gás e Energia, a subsidiary of Cosan, in the process of disinvestment from Gaspetro, after receiving approval from the Administrative Council for Economic Defense (Cade) for the move, the state company reported last Wednesday.

Braskem announced on Wednesday that it closed agreements with authorities to extinguish public civil actions related to a geological event with ground subsidence in Alagoas, to compensate residents and social and environmental reparation.

(With Reuters, Agência Estado and Bloomberg)

Do you want to migrate to one of the highest paying professions in the country and have the opportunity to work in the XP Inc. network? Click here and watch the free Financial Market Career series!