The stock market has a week in the red amid the collapse of Gol and employment in the USA

The stock market has a week in the red amid the collapse of Gol and employment in the USA
The stock market has a week in the red amid the collapse of Gol and employment in the USA
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SEE Market | Closing of the week | January 29th to February 2nd

O Ibovespa, the main financial market index, ended last week with an accumulated drop of 1.21%, just above 127 thousand points. The result was influenced by the release of employment data in U.S, on Friday the 2nd, which show a heated economy and corroborate the monetary tightening in the country. The collapse of the airline also weighed heavily on the account. Goal, which despite being excluded from Ibovespa since Wednesday, plummeted 50% on Monday and Tuesday alone. In total for the week, the variation in airline shares was almost -57%.

The latest US employment report revealed the creation of 353 thousand jobs in the country in January alone, double the market expectation of 185 thousand vacancies. Workers’ wages also grew, by 0.6% in the same period. The data, although positive for economic growth, represents a challenge for the Federal Reserve (Fed), the American central bank, as they suggest the need for high interest rate policy to contain inflation. The news is negative for the Brazilian variable income market, with an impact on the Ibovespa. The higher — and therefore more profitable — American interest rates, the more attractive it is to invest in fixed income in the USA instead of allocating capital on the Brazilian stock market.

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Also harming the Brazilian market, the airline’s performance Goal has caused headaches for investors since the announcement that the company filed a request for judicial recovery in the USA last week. The company’s shares have fallen by more than 60% since the recovery request was made public on the 25th. Another company that is going through a challenging period gave a relevant signal to the market in recent days. The retailer Magazine Luiza announced that the Trajano family, founders of the company, and the bank BTG Pactual will contribute 1.25 billion reais to Magalu through a capital increase. The fact was well received by analysts, but did not prevent the shares from falling 3.7% since the announcement.

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The week was marked by a consolidation of movements by the Brazilian and American central banks. Both the central bank When the Fed deliberated on its interest rates on Wednesday — the so-called Super Interest Wednesday —, and both repeated what they had done in the previous decision. In the Brazilian case, the Selic it was again cut by 0.5 percentage points, this time reaching 11.25%. This is the lowest level since March 2022. For the former president of the BC Henry Meirelles, the continuity of the good work of the municipality is promising, as he said in an interview with the column. In the USA, interest rates were kept in the same range as they were, between 5.25% and 5%.

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The article is in Portuguese

Tags: stock market week red collapse Gol employment USA

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