The Sao Paulo stock market accumulates third fall followed by fiscal concern By EFE

Sao Paulo, Oct 28 (EFE) .- The Sao Paulo stock market fell 0.62% this Thursday and recorded its third consecutive fall, amid persistent doubts about the fiscal direction of the Government of Jair Bolsonaro and its intention to increase social spending in 2022.

The index, the benchmark for the trading floor, closed with 105,704 points in a highly volatile session in which it registered a rise of 0.7%, but in the final stretch it changed sign to finish dyed red.

Financial operators are still pending the evolution of the Brazilian fiscal scenario, after the Government decided to alter the spending ceiling and postpone the payment of part of the State’s judicial debts in order to expand a social subsidy program in 2022, year in which who will aspire to re-election.

These maneuvers, which have yet to be approved by Congress, already caused serious turbulence in the São Paulo market last week, when it accumulated a 7.3% decline, as well as in the currency market, with a strong appreciation of the dollar against the dollar. real.

The US currency revalued this Thursday by 1.25% and closed at 5.62 reais for buying and selling, at the Brazilian commercial exchange rate.

The result was also influenced by the decision of the Central Bank to raise the country’s basic interest rate by 1.5 points to 7.75% per year, its highest level in four years, in an attempt to contain inflation, which already exceeds 10% year-on-year.

All in all, the Sao Paulo stock exchange today subtracted 658 units from its accumulated score.

The volume traded reached 29,400 million reais (5,200 million dollars), in a total of 4,349,621 financial operations.

At the top of the gains in the Ibovespa were the common shares of the brewery Ambev, which rose 9.7%, followed by the meat company BRF (6.6%) and the state oil company Petrobras (NYSE :), whose shares were they recorded increases of between 1 and 1.8%.

On the negative side, the Americanas retail trade network lost 8.6%, as did the oil company PetroRio (-7.3%) and Getnet, the retail payments subsidiary of the Santander Bank (MC 🙂 (-6.6%), which started trading on the stock market last week.

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