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Ibovespa registers its 12th consecutive rise and reaches a new record.
The main index of the Brazilian stock exchange, the Ibovespa, closed up 1,60% this Tuesday (11), at 157,749 points, marking its 12th consecutive rise and renewing historical records. During the trading session, the index even surpassed 158,000 points, a level never before reached, reflecting investor optimism in the face of positive economic data in Brazil.
Dollar falling and inflation lower than expected.
The commercial dollar fell 0.64%, quoted at R$ 5.27, its lowest level in 17 months, since June 2024. The American currency was pressured by the slowdown in the country's official inflation, measured by the IPCA, which was only 0.09% in October, below market expectations, which predicted an increase between 0.10% and 0.16%. In the accumulated 12 months, the IPCA rose 4.68%, the lowest level since 1998.
This slowdown in inflation is mainly attributed to the drop in residential electricity prices, which decreased by 2.39% in October, influenced by the change from the red tariff flag level 2 to level 1, reducing the extra charge on electricity bills.
Impacts and outlook for the market
The controlled inflation scenario reinforces expectations that the Brazilian Central Bank may reduce the basic interest rate soon, which stimulates the stock market and attracts investors. PicPay's chief economist, Ariane Benedito, highlighted that the October result confirms a consistent process of disinflation, especially in administered goods and services.
Abroad, the Dow Jones index also hit a new record, rising 1.181%, while the S&P 500 advanced 0.221%. The Nasdaq, however, experienced a slight decline, influenced by the drop in Nvidia's stock price.
Main highs and lows on the Brazilian stock exchange.
- Shares of Lojas Henner led the gains, with an increase of almost 4%.
- Magazine Luiza (Magalu) had gains of 3.44% in the trading session.
- Among the biggest declines were the shares of Asa, with a drop of 2.05%, and Suzano, which fell 1.93%.
International context and trade negotiations
In the United States, the Senate approved the end of the shutdown, which contributed to a positive climate in global financial markets. Furthermore, trade negotiations between the US and China remain ongoing, with expectations of progress that could impact global trade and Brazilian exports.
Photo by Vadim Shevyrin on Unsplash
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