INSUBCONTINENT EXCLUSIVE:
The Brazilian stock market experienced a significant decline on Friday, December 13, with the Ibovespa index dropping 1.13% to close at
124,612.22 points.This loss amounted to 1,429.99 points, marking a total weekly decline of 1.06%
confirmed their worst fears
The currency exchange also faced challenges, with the commercial dollar rising by 0.43% to R$6.03.The Central Bank attempted to intervene
Additionally, future interest rates (DIs) surged across the board, approaching 15%, reflecting broader economic concerns.The economic
backdrop remains troubling, primarily due to fiscal issues
Ibovespa Drops 1.13% on Friday
also raised projections for gross public debt as a percentage of GDP for next year.As President Lula recuperates from health issues, the
fiscal package has yet to be addressed by Congress, which is currently focused on tax reform discussions in the Senate.Economic Resilience
Amidst ChallengesDespite these political challenges, there are signs of economic resilience
Preliminary GDP data for October indicated a strong start to the fourth quarter of 2024.The IBC-Br index exceeded market expectations,
supporting a projected economic growth rate of approximately 3.5% for the year
Economist Rodolfo Margato from XP noted a substantial increase in retail sales and service revenues.He stated that this combination of
economic activity data suggests strong GDP growth by year-end
His estimates indicate a 0.7% expansion in the fourth quarter compared to the third quarter.Additionally, there was a significant 4.4%
increase compared to the same period last year
This positive outlook has boosted retailer confidence to its highest level since February 2023.Globally, major indices in New York remained
stable while European markets closed mixed amid cautious sentiment ahead of an upcoming Federal Reserve meeting that may lead to interest
rate adjustments.On the Brazilian stock exchange, few stocks managed to escape the downturn
Vale (VALE3) marked its fourth consecutive decline with a drop of 1.50%
Petrobras (PETR4) fell by 0.63%, amidst considerable volatility
Banks also suffered losses exceeding 1%.Retailers attempted to maintain some optimism but ultimately succumbed to market pressures
which rebounded by 4.87% amid rumors of a potential merger with Dia
Embraer (EMBR3) showed some resilience, trading positively most of the day before closing up by 0.36%.Analysts see potential for further
gains following an impressive performance in 2024 with over a 150% increase
Looking ahead, next week promises to be eventful as Congress aims to finalize key legislation before its recess.If they fail to do so,
critical decisions will be postponed until February when elections for leadership positions will take precedence
financial landscape in Brazil.
