© Reuters. .
By Peter Frontini
SAO PAULO (Reuters) – The Brazilian stock market had a new session of losses on Tuesday, reflecting the market’s concern about the country’s fiscal situation, a move this time supported by the also negative movement of Wall Street.
The index fell 1.15%, to 93,580.35 points. The financial volume of the session totaled 23.3 billion reais.
After retreating 2.4% on Monday, it even outlined a recovery in the early hours of trading, but soon lost strength in the face of persistent fears linked to public accounts, after the announcement of a proposal for the Citizen Income program.
The proposal to use part of the resources of precatorioses – debts of lawsuits lost by the Union and which must be paid after the final sentences – and resources of the Fund for the Development of Basic Education (Fundeb) to finance the Citizen Income was seen by the market as an attempt to circumvent the spending ceiling and fiscal adjustment.
Earlier, President Jair Bolsonaro complained about the market’s negative reaction to the proposal, asking for suggestions to finance the program.
Even though the details and approval of the program are still uncertain, the announcement was a blow to the country’s fiscal credibility, analysts at Julius Baer said in a note.
On the international stage, investors await the first debate in the United States’ presidential elections between Republican President Donald Trump and Democratic rival Joe Biden.
The S&P 500 index was down 0.48%.
– PETROBRAS PN (SA 🙂 decreased by 1.63%, while PETROBRAS ON (SA 🙂 lost 2.8%, due to the sharp drop in oil futures contracts. On Wednesday, the judgment of the lawsuit on the possibility of selling the company’s refineries should be resumed in the STF.
– AZUL PN (SA 🙂 fell 7.7%. Bradesco BBI downgraded the company’s recommendation to “neutral”, revising the target price from 27 reais to 23 reais. GOL (SA 🙂 PN lost 5.7%.
– IRB BRASIL (SA 🙂 increased 1.1%, expanding the recent rally after approval of an issue of simple non-convertible debentures of up to R $ 900 million.
– ITAÚ UNIBANCO PN fell by 2.18%. BRADESCO PN (SA 🙂 fell 2.38%, and BANCO DO BRASIL ON (SA 🙂 lost 2.46%.
– WEG ON (SA 🙂 gained 3.26%, after registering a drop of more than 2% the day before.
– HAPVIDA ON rose 0.17%, after announcing the purchase of the Santa Filomena group, in the interior of São Paulo, for R $ 45 million.