Close to the day’s lows, the Ibovespa registered a drop of 3.04%, at 110,845 points, at 16:00 (Brasília time) on the return of the Tiradentes holiday, amid the monetary policy signals of the National Central Bank, but, mainly from the Federal Reserve, leading to a strong adjustment in the markets.
The Federal Reserve is expected to raise interest rates by 0.50 percentage points in May and two further adjustments at subsequent meetings, as traders bet on Friday, according to Reuters. This comes a day after US central bank governor Jerome Powell signaled that he would be open to intensifying the beginning of the Fed’s exit from its ultra-loose monetary policy.
“The view that the Fed should step up its pace, which was held by the more hawkish policymakers at the outset, has become widely accepted. With this, the market is already pricing in at least three half-point hikes (in interest rates) in the next meetings,” XP said in a note.
Abroad, Wall Street, oil and emerging currencies retreated, on fears of potential effects on demand and economic growth from a stronger restriction in monetary conditions, which could also begin to affect corporate balance sheets.
As a result, few stocks registered gains here, while securities linked to commodities had a sharp drop, also reflecting the negative performance of American Depositary Receipts (ADRs, in practice, the assets traded on the New York Stock Exchange of national stocks) on the eve. , day of closed B3.
Copel (CPLE6), Hypera (HYPE3), Ambev (ABEV3) and RD (RADL3) and Vivo (VIVT3) were among the few highs in the index, 5 highs among the 91 stocks in the index.
Already the highlight of the fall is with CSN (CSNA3), down 8.31%, at R$ 2.186. The day before, the steelmaker’s ADRs had already registered a strong drop of 7.41%. Vale’s shares (VALE3), with greater weight on the Ibovespa, have lost 5.6%, at R$ 80.64, after the drop in the price of iron ore on the Dalian stock exchange, with concerns about weak demand in China. . The session marked the commodity’s first weekly low in two months.
Petrobras assets (PETR3;PETR4) also recorded losses, of 3.70% for ON assets and 3.18% for PN, amid the 1.5% drop in the Brent oil contract for June, the US$ 106.70 a barrel.
Oil is heading for a weekly loss of around 4% amid rising US interest rates and concerns about growth in China and the global economy, even as the European Union considers a ban on Russian oil that would further restrict plus the offer.
Eletrobras shares (ELET3;ELET6) also recorded significant losses, of around 5% for ELET3 and 4.2% for ELET6, after a rise on Wednesday. At the time, the market closed when the TCU ministers were still discussing the period of a request for views in the process of privatization of the company. Minister Vital do Rêgo requested 60 days, but after colleagues argued for reducing the period to seven days, which encouraged the market, he accepted. reduce the interval to 20 days.
the postponement frustrated government expectations of carrying out by May the state capitalization. THE Minister of Mines and Energy, Bento Albuquerque, projected this morning the completion of the capitalization offer until Julywhich generated a slight reaction initial positive in the company’s roles.
Falling retailers and builders
But it’s not just commodity papers that are down sharply. Amidst the scenario of high interest rates, reinforced by the speech of Roberto Campos Neto, president of the BC, the shares of domestic consumption companies registered a strong fall.
Today, at an event with investors, the BC president stated that the Monetary Policy Committee (Copom) is ready to adjust the size of the monetary tightening cycle if inflationary shocks are greater or more persistent than expected.
In this session, the rates of the main interest futures contracts have an upward movement – a trend that was strengthened due to the advance of the dollar, which exceeds R$ 4.80, with an increase of about 4%. The contract due in January 2023, however, is down one basis point to 13.03%. The one for 2025, on the other hand, advances eight basis points, to 12.11%, while the one for 2027 rises 14 points, to 11.91%. The 2029 one has an advance of 14 points, at 12.02%.
Locaweb (LWSA3) is down 6.29% (R$7.90), Petz (PETZ3) is down 5.69% (R$15.07), Cogna (COGN3) is down 5.26% (R$2. 52). Iguatemi ([ativo=IGT11]) drops 4.87% (R$ 20.32) and Soma (SOMA3) is down 4.86% (R$ 13.69), while retailers Pão de Açúcar (PCAR3) and Lojas Renner (LREN3) above 4%.
Natura shares (NTCO3), after rising at the beginning of the session, turned to fall and operated down by more than 5% (-5.60%, at R$ 20.02). The stock had dropped 15.6% on Wednesday., amid market rumors that the company would report weak numbers for the quarter. At night of the evethe company announced a 12.7% to 13.3% drop in net revenue in reais in the first quarter compared to the same period of the previous year, while the adjusted Ebitda margin should fall to between 7.0% and 7.3%.
Citi downgraded the cosmetics maker’s common stock recommendation after the company’s operational preview revealed that the short- and medium-term challenges are greater than the bank’s analysts had projected. The stock had its recommendation cut from “buy” to “neutral”, while the stock’s target price was reduced to BRL 26, from BRL 36 previously, which suggests an upside potential of 21.8% compared to the last close. , “still considerable, but not enough to justify the purchase,” the analysts wrote.
Construction stocks, which also suffer from the rise in interest rates, recorded a significant drop this session, with MRV (MRVE3) down 3.57%, at R$ 10.79, while Cyrela (CYRE3) fell 2.74%. , at R$ 14.90.
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