Friday’s trading saw the Ibovespa index struggle to stay positive, closing with a minor gain of 0.08% and ending at 119,662.38 points. However, this increase was not enough to offset the week’s 0.91% decline, marking the fourth consecutive week of losses. The commercial dollar also rose by 0.28% to R$5.38 ($1.01), while future interest rates fell across the curve.
Planning and Budget Minister Simone Tebet promised “a menu of possibilities” to reduce expenses in order to meet fiscal targets without compromising social investments. Emphasizing the need for daily meetings to finalize these plans by the end of June, Tebet highlighted the protection of minimum wage increase and retirement benefits.
Supported by Finance Minister Fernando Haddad, this new approach aims to restore rationality in government interactions with market agents and investors to calm financial markets, which have been volatile due to fiscal concerns. Market analysts predict a primary deficit of R$79.715 billion for 2024, reflecting skepticism about the government’s ability to eliminate the deficit with the new fiscal framework.
Despite the government’s efforts, the stock market remains uncertain. Vale (VALE3) ended down 0.36% while Petrobras (PETR4) fell by 2.20%. However, PRIO (PRIO3), WEG (WEGE3), and B3 (B3SA3) saw some positive movement.
With upcoming events like Copom’s Selic rate decision next week, investors are in for an interesting ride. Stay tuned amidst the volatility of the market!