© Reuters. Sao Paulo closes with a slight drop after disclosure of the Fed’s minutes
Sao Paulo, Nov 23 (EFE).- The Sao Paulo Stock Exchange closed this Wednesday with a slight decrease, of 0.18%, and its reference index at 108,841 points, after the disclosure of the minutes of the last meeting of the Reserve Federal (Fed), which makes it possible to anticipate a slowdown in the pace of rate hikes in the US.
The São Paulo market had been registering a day with great oscillations and at half a session it lost up to 1.05%, but after the disclosure of the Fed’s minutes it began to recover and ended the day practically in a draw.
The US Reserve document showed that most of the members of the Central Bank foresee a slowdown “soon” in the current rate of increase in the basic interest rate of that country given the possibility that the largest world economy enters recession. .
After its disclosure and the forecast that rates in the United States will stop growing rapidly, the vast majority of the markets began to recover and the dollar to retreat against other currencies.
In the Brazilian foreign exchange market, the dollar, which had also been oscillating and rose strongly, ended the day, after the disclosure of the FED minutes, with a slight depreciation of 0.05% and quoted at 5.371 reais for purchase and 5,373 reais for sale at the commercial exchange rate.
The Sao Paulo parquet fluctuated again this Wednesday to the rhythm of the negotiations in Congress of the proposal presented by the transition team of the president-elect, Luiz Inácio Lula da Silva, which allows the future Government to exceed the ceiling of public spending foreseen by 2023, to be able to finance the promises of the progressive leader to improve aid to the poor.
The recovery of the Ibovespa at the end of the day was helped by the appreciation registered by the shares of the mining company Vale and the oil company Petrobras (NYSE:), the main Brazilian stocks and traditionally the most traded.
Vale’s ordinary paper ended the day with an appreciation of 0.99% and was the most traded, followed by Petrobras’ preferential paper, which rose 0.47%.
The shares that registered the greatest increases in the day were the ordinary ones of the Rede d’Or hospital network, which appreciated 3.57%, followed by the ordinary ones of the Marfrig meat company (3.16%) and by the unitary ones of the insurance operator Sul America (2.95%).
On the opposite side, the papers that ended the day with the greatest decreases were the ordinary ones of the CVC tour operator, with a fall of 7.22%, followed by the ordinary ones of the credit and debit card operator Cielo (-6 .82%) and by the regulars of the American department store chain (-5.36%).
During the day, 23,360.6 million reais (about 4,347.8 million dollars) were traded as a result of 3,725,248 financial transactions.