The perception of fiscal risk returned to weigh on local business during this week, leading the dollar to climb 4.67%, closing this Friday (26) to R $ 5.7413. In the same period, the Ibovespa fell 1.24%, despite the advance today.
The icing on the cake for the fear of the market with public accounts was the approval of the Budget for 2021 in Congress, which raised parliamentary amendments to a total of R $ 48.8 billion for use in works in electoral strongholds.
Thus, in order to meet the spending ceiling, a block of at least R $ 30 billion will have been made this year, affecting non-mandatory spending – which includes investments – and imposing a risk of shutdown in the second half.
The approval of the Budget put pressure on the dollar, which advanced 1.25% only this Friday. The previous day, the price rose, influenced by the news that at least 16 states would be pressing Congress for more emergency aid than the approved proposal.
The American currency is still favored worldwide because of the perception that the United States may have a faster recovery than in other regions, according to Roberto Padovani, chief economist at BV bank.
In Brazil, the Ibovespa rose 0.91% this Friday, to 114.780 points, supported by the advance of commodities abroad. During the afternoon, the main index of the stock exchange came to operate in the red, with a low volume of trading due to the early holidays in São Paulo for brazil.
Holiday, aid and vaccine
The city hall of the city where the Brazilian stock exchange operates has anticipated five holidays, starting this Friday, to try to contain the advance of the pandemic at a time of successive records in the number of deaths.
On the other hand, from São Paulo came the news that the Butantã Institute will start the clinical phase of testing a vaccine developed in Brazil. The production of a national immunizer – which would bring greater control over production for the country – came to contribute positively to the market this Friday.
Meanwhile, in the US President Joe Biden has promised to increase the rate of vaccination – the country would immunize 200 million people in the first 100 days of the current mandate’s management, according to the new government goal.
In the country, the market started the most optimistic day also due to inflation (PCE), which increased 0.1% – eliminating fears of a surge in prices.
At the end of the day, the Dow Jones index had gains of 1.39%, the S&P 500 advanced 1.66% and the Nasdaq rose 1.24% – with emphasis on banks, which had relaxed restrictions, and companies linked to the Petroleum.
In Europe, the Stoxx 600 pan-European index closed up 0.91%, with gains of 0.85% for the week. In the Middle East, the highlight is the Suez Canal, which is still blocked by a ship that ran aground.
Space is the main route for the flow of oil from the Middle East. The impasse puts pressure on oil barrel prices and influences the shares of companies in the oil sector.
In Brazil, Petrobras’ shares (PETR4) rose 1.21% this Friday, to R $ 23.40, but they did not reach the biggest highs of the week’s Ibovespa.
The biggest breakthrough in the period came from Carrefour, which bought BIG. At the other end, there were mainly the roles of companies that should be most affected by a prolongation of the pandemic.