Ibovespa sees 9% of oil booming, closes with Christmas hangover

SÃO PAULO – After two days without operation due to the Christmas holidays, the Ibovespa had a hangover session on Wednesday (26), closing the trading session between and the sale of international markets last Monday (and the consecutive decline of ADR) and the ongoing recovery of Wall Street and oil, which increased by more than 9%. The benchmark of the Brazilian Stock Exchange has accumulated losses of 0.65%, reaching 85 136 points. The financial transaction traded at B3 amounted to 9.56 billion rubles, or 2/3 of the average of the last 21 days.

In this session, investors remain vigilant about the next steps of the monetary policy of the US Federal Reserve, which announces a reduction in its balance sheet and suggests the possibility of two interest increases next year, as well as that friction between President Donald Trump and the country's monetary authority. The new episode has placed the conditions of local British Columbia's autonomy in the current government at the center of concerns. Also called the attention of economic agents at the stop which maintains non-essential services closed in the country and a political stalemate between the president and parliament.

See Highlights of the Trading Session:

19659005] Only 6 of the 64 shares in the theoretical portfolio of Ibovespa closed at a value greater than 1% at this meeting. In the negative, pulling the negative session of the index, shares of banks and companies in the mining, steel and retail sectors were marked. In the opposite direction, Petrobras shares (PETR4) turned into positive territory as oil prices skyrocketed on the international market.

The actions of the group Pão de Açúcar (PCAR4) drew attention to the losses of the next day. news that the company must abandon its stake in Via Varejo until the end of next year. If you can not find a buyer for shares, a process that has been dragging on since 2016, the group will sell its position in the market, which could put pressure on the roles because of the strong offer. The exit process begins Thursday, when 50 million shares will be sold on the stock market, which corresponds to 3.86% of the company's capital.

Code	Active	Cot R $	% Day	% Year	Theft 1
KROT3 of the shares component Ibovespa.	KROTON ON	8.60	-5.18	-51.61	105.19M
PCAR4	P.ACUCAR-CBDPN	77.76	BWW3	B2W DIGITAL ON	38.00	-3.85	+85.37	19659019] 55.93M
SMLS3	SMILES ON	43.50	-3.33	-39.68	24.54M
MGLU3	MAGAZ LUIZA ON	176.76	-3.28	+120.95	142.69M

The highest increases, the items making up the Ibovespa, are as follows:

Code [19659009]	%	% Year	%	%	%
%
1
MRFG3	MARFRIG ON	PETROBRAS PN ERJ N2	21.68	+3.46	+40.36	1.62B
PETR3	PETROBRAS ON ERJ N2	24.58 [19659053] +1.83	+46.77	308.42M
NATU3	NATURA ON [19659054] +1.57	+34.08 [1965901] 8] 65.03M
UGPA3	ULTRAPAR ON	50.19	+1.19	-31.42	] 49.41M

The most traded shares , among which the Ibovespa, were:

Code	Active	Cot R $	Var%	Flight 1	] 19659089]
PETR4	PETROBRAS PN ERJ N2	21.68	+3.46	76.223
VALE3	VALE ON	50.44	-0 83		669.74M	1.15B	28.031
ITUB4	ITAUUNIBANCOP EJ	33.73	-2.18 . , 1965	643.93M	45.009
BBDC4	BRADESCO PN EJ	36.60	-1.32	482.23M	521.38M	32.645	BBAS3	BRAZIL ON	44.38	+0.66	323.50M	444.57M	17.355
PETR3 19659090] PETROBRAS ON ERJ N2		+1.83	308.42M	348.92M	28.322
ITSA4	ITAUSA PN EJ			B3 ON EJ	26.05	–	–	1.94	212.21M	269.05M	20.092
ABEV3	AMBEV S / A ON EJ	15.14	-0.20 ]	] 174.27M	306.65M	18.784 [19659096] PCAR4	P.ACUCAR-CBDPN	77.76	-5.01	152.10M	124.58M	10.243

^* – Lot of Thousand Shares
¹ – In r eais ( K – Thousand | M – Millions |

Last Monday (24) in the United States, the market experienced its worst Christmas vacation in history and contaminated the world's major stock exchanges. investors worried about the way the Federal Reserve should follow its monetary policy and the clashes with President Donald Trump. The Dow Jones Industrial Average plunged 653 points on a volatile day, while the S & P 500 index fell 2.7% and entered the bear market technically – bear market, holding account of a cumulative decline of at least 20% compared to recent highs.

The market movement occurred in response to Washington news over the weekend. Several reports announced that the President of the United States would discuss the opportunity to remove Jerome Powell from the post of president of the Fed . In response to rumors, the Treasury Secretary, Steven Mnuchin, even took action ] contacted with the country's six largest banks over the weekend, in order to calm the atmosphere . But Trump has resumed the attacks on Monday's monetary authority by Twitter.

With the negative day on the market, the 11 sectors represented in the S & P 500 now show sour losses in December in the fourth quarter of the year, quarter and year-to-date. In addition to Trump's frictions and uncertainties about British Columbia's institutional and autonomy levels, investors are also preparing for the next steps of the Fed, which promises to reduce its balance sheet and maintain two high interest rates on the radar. for the coming year, despite the toughest environment in the global economy.

On Wednesday, however, the climate was recovering for some of the world's leading stock indexes. The Dow jumped 700 points (+ 3%) and erased the losses of the worst Christmas Eve on Wall Street. The S & P500 has jumped more than 3% and has moved away from the bear market, representing a cumulative drop of at least 20% from the recent highs. The Nasdaq has surpbaded the 4% peak.

On the commodity market, oil caught fire. WTI barrels ended the day at a record high of 9.64 percent, at $ 46.63, while barrels of brent jumped 8.82 percent to $ 54.92. The movement of merchandise follows a reduction in market concerns related to the pace of production, after an effort by Allied producers, known as the OPEC +, to reduce supply. The idea is to reduce production by 1.2 million barrels a day by 2019, a measure that can be intensified according to what some ministers advocate.

ADR on vacation

The roles of large Brazilian companies traded The US market had a negative session on Monday, following the bad mood of investors face the attacks of Donald Trump on the Federal Reserve. The Brazil Titans 20 Index, which includes 20 ADRs (American Depositary Receipt), lost 1.56% to 21,057 points, while the EWZ Index lost 1.37% to 36.63 USD. Shares of Vale Mining were one of the highlights of the session, closing down 2.33% to $ 12.60.

Economic Agenda

Through the agenda of the indicators, the IPC-S (Consumer Price Index Week) published by the FGV (Fundação Getulio Vargas), showed a reversal of the signal 0.03% decline in second reading in December, rising to 0.10% in the third quarter of 2003.

During the period under review, five of the eight expenditure clbades included increase in rates of change, with a focus on housing (-0.36% to -0.13%), including post

Significant increases were also recorded in the following groups: Education, reading and recreation (0.83% to 1.09%). %) and health and personal care (0.03% to 0.10%). In these price groups, there was an increase in trips and vacations (4.91% to 6.48%) and hygiene and personal care items, which went from 1.28% to a less intense drop of 1.02%. , respectively.

Education, reading and recreation (1.09% to 0.98%), communication (0.11% to 0.05%) and miscellaneous expenditures (0.25% in The national economic agenda, data on the stock of debt of the federal government which rose by 1.69%, rose to 1.69% in the second half of the year.% in November and reached R3.826 billion, according to the National Treasury.In October, the stock amounted to R $ 3.63 billion.The correction of the interest on the stock amounted to 29.02 billion. of rubles in November, while emissions totaled 52.013 billion pesos and repurchases, 17.334 billion pesos – which gave a net emission of 34.68 billion pesos

The share of the DPF expiring in 12 months is fell from 16.49% in October to 16.37% in November, according to the National Treasury, while at the same time, the average maturity of the debt fell from 4.24 years in October to 4, 19 years old last month The average cumulative cost over 12 months of DPF stock rose from 10.06% per annum in October to 10.11% per annum in November. Despite the rise, the average cost of issuing domestic debt in November fell to 7.70%, according to National Treasury data.

Also on Wednesday, the Central Bank announced that the exchange rate flow for the year through December 21 is positive at R $ 2.646 billion. During the same period last year, the result was positive at USD 4 167 billion. Net outflows of dollars through the financial channel during the period were 44.605 billion US dollars.

In foreign trade, the accumulated annual balance was positive at US $ 47.251 billion and imports at US $ 176 448.

Political News

On the eve of the inauguration of President-elect Jair Bolsonaro, Brazil's optimism against the economy beats records, according to a Datafolha study . According to the institute, 65% of those surveyed believe that the country's economic situation will improve in the coming months, compared with 23% in previous research conducted in August this year. This is the highest index of the historical series, which began in 1997.

It also draws attention to the news that Chamber of Deputies technicians have led the government's political articulators to a legislative maneuver to speed up the vote on constitutional reforms, such as tax reform. and social security. According to the newspaper Valor Econômico the strategy would be to present a new CEP (proposal to amend the Constitution) on the subject, to annex to the subject already ready for the vote in plenary, on the basis of the previous decisions of the Presidents.

This would allow the government of Jair Bolsonaro to take advantage of the texts presented by Michel Temer, with the possibility of modifying them in addition to the amendments presented or the opinions voted in committee. In practice, it saves time to move forward with the measures, taking advantage of the period of political empowerment of the elected government.

Although there are precedents in other legislatures, the maneuver is controversial because internal rules prohibit "joining" two projects in different phases of the process, in order to avoid approval of changes little discussed. Even in this case, it will be difficult for the opposition to challenge such a decision, as this practice has already been adopted at a time when Arlindo Chinaglia (PT-SP), Eduardo Cunha (MDB-RJ) and Rodrigo Maia (President of the Chamber) presided over the meeting. ), for example

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