The Ibovespa closed down by 0.65%, at 104,865 points, in a trading session with a trading volume of R$ 15.9 billion, down due to the holiday season. The index was negatively affected by the performance of mining and steel companies that recorded strong declines after the price of the ton ore decline by more than 3% in China. The price of Vale’s common shares (VALE3) decreased 2.72%, from preferred shares, of Usiminas (USIM5), 1.93%, and of the common shares of CSN Mineração ( CMIN3), 2.54%.
The price of the commodity dropped due to the fact that the Asian giant, the largest consumer of the product in the world, showed a drop of 2.3 % in steel production in December. “The lower production also led to an increase in the steel stock in China”, comments Henrique Esteter, market specialist at InfoMoney.
The fear regarding the consumption of ore in the country still extends to the future. “There are also uncertainties about demand at the beginning of next year, even more so with environmental restrictions due to the Winter Olympics”, adds Rafael Ribeiro, an analyst at Clear Corretora.
In addition to ore, doubts regarding Samarco’s judicial reorganization process,
Vale, as well as steel and mining companies, did not experience the greatest percentage drops in the index. “Vale and steel companies are companies that have a lot of weight on the Ibovespa. Only Vale, if you are going to add Bradespar (BRAP4) , represents more than 10% of the score”, explains Esteter.
The highest low percentages of the Ibovespa, in turn, were Asai (ASAI3), Lojas Americas (LAME4) and Intermédica (GNDI3). On the other side, among the highs, were Cielo (CIEL3), Yduqs (YDUQ3 ) and CVC (
CVCB3
). Day had data on employment, credit and sector confidence
In addition to mining companies, the disclosure of labor market data and the confidence of the commerce and service sectors also weighed in the Brazilian index.
The Brazilian Institute of Geography and Statistics (IBGE) reported that the unemployment rate dropped to 12.2% in the quarter ended in October, compared to 12.6% in the second quarter this year. Despite the apparent improvement, with the decrease in the number of unemployed, the PNAD survey also brought some negative points.
“We have indeed seen the acceleration of jobs, but the income level is still very low. The average income from work is the lowest in the historical series started in 2012”, says Esteter.
Goldman Sachs, in a report, went in the same direction, also pointing out that job creation, despite surpassing the consensus, decelerated compared to previous months.
Goldman Sachs also analyzed that the country’s credit portfolio, despite having grown, slowed down. “We expect credit conditions for non-businesses to become a little more demanding in the coming months, given the record level of consumer indebtedness, rising rates and the still significant job market,” they commented.
The FGV reported that the confidence of the trade and services sectors fell in December compared to November, in the same sequence, 2.7 points , for 85.3 points, and 1.3 points, for 95.5.
The commercial dollar closed stable, rising only 0.02%, at R$5.639 in purchases and R$5.640 in sales. The future dollar closed with a slight drop of 0.11%, at R$ 5.626. In the interest rate market, DI contracts maturing in February 2023 rose 23 basis points to 11.67%, those maturing in February 2025 fell 5 basis points, and those maturing in February 2029 dropped 9 points -base.
American stock markets opened higher, but yielded Finally, there is the performance of the American stock exchanges. Despite having opened higher, the S&P 500 and Nasdaq began to fall mid-trading, closing down 0.10% and 0.48%, respectively.
“Investors are counting down to 2022 and do not seem to want to take new risks, even with the international scenario on the rise, despite also registering less liquidity ”, commented Alexsandro Nishimura, head of content and partner at BRA.
At noon, the Richmond Federal Reserve released its monthly reading on the manufacturing sector, which came in at 16, down from 11 in November. Simultaneously, the yields of American treasures gained up: signs that the country’s economy is buoyant have been interpreted as an impetus to cut stimulus and raise interest rates. The Dow Jones, normally less affected by the interest rate advance, managed to close the day up 0.26%.
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