Ibovespa Rises on Prospects of Fiscal Adjusment
The Ibovespa rose near 1% to hover above 172,500 on Wednesday after the government’s economic team presented a preliminary fiscal adjustment proposal to Congress. Although details remain scarce, it is the first concrete sign of public-account adjustment since President Lula’s reelection. Credit-sensitive stocks gained. Major banks advanced, Itaú rose over 1%, Bradesco added more than 1.5%, and Banco do Brasil gained over 0.5% ahead of its earnings. Other financials also advanced, with B3 up over 2.5% and Itaúsa nearly 1.5%. Utilities rose as well, with Axia adding more than 1%. Meanwhile, Petrobras fell nearly 3% after its Q3 report. Net income of R$39.75 billion, up 21.5% year on year but below market expectations of R$47.02 billion. In contrast, Vivo added 4% as it began Q4 positively, with higher sales amid the launch of new Apple smartphone models. Rede D’Or gained 3% ahead of its release tomorrow.
The Ibovespa rose near 1% to hover above 172,500 on Wednesday after the government’s economic team presented a preliminary fiscal adjustment proposal to Congress. Although details remain scarce, it is the first concrete sign of public-account adjustment since President Lula’s reelection. Credit-sensitive stocks gained. Major banks advanced, Itaú rose over 1%, Bradesco added more than 1.5%, and Banco do Brasil gained over 0.5% ahead of its earnings.
Other financials also advanced, with B3 up over 2.5% and Itaúsa nearly 1.5%. Utilities rose as well, with Axia adding more than 1%. Meanwhile, Petrobras fell nearly 3% after its Q3 report. Net income of R$39.75 billion, up 21.5% year on year but below market expectations of R$47.02 billion.
In contrast, Vivo added 4% as it began Q4 positively, with higher sales amid the launch of new Apple smartphone models. Rede D’Or gained 3% ahead of its release tomorrow.