Petrobras (PETR3; PETR4) suffers from Saudi Arabia's decision to drop the price of oil below US$ 30 to harm Russia/; Vale shares (VALE3) falls 10%

The disputes between Saudi Arabia and Russia over oil prices collapsing. In addition to this dispute, there is also a decline in product consumption due to the new coronavirus, which has been pushing the global economy into recession, a movement that should catch Brazil in a very fragile situation. Analysts say the crisis between the government and Congress, the target of a demonstration encouraged by President Jair Bolsonaro, scheduled for March 15, increases distrust of the country.

2019 is going to be a tough year for Petrobras. Due to the economic effects of Conav-19, there was a drop of 24% in the international price of oil. This led the Brazilian state-owned company to lose about 80 billion reais in market value on the Brazilian stock exchange B3 until 06.03.2020.

Now, with the dispute between Russia and Saudi Arabia influencing oil prices, even more, Petrobras has been hit again. Since the beginning of the year, Petrobras has seen the prospect of annual cash generation falling by 20 billion dollars.

Earlier today, the Ibovespa registered a sharp drop in Petrobras' shares (PETR3; PETR4), which fell 23%; Vale (VALE3), which fell 8%; and banks, which also fell 8% as oil prices plunged up to 30% after Saudi Arabia lowered the prices of the commodity and with projections of a drop of up to $ 20 a barrel.

According to the website Infomoney, "Petrobras' ADRs, on the NYSE pre-market, dropped by up to 20%, Vale's were down 22% and Itaú's were down by around 10% on a day of a general downturn in the stock market".

Earlier this morning, the Brent-type oil futures contract, which serves as a benchmark for the prices charged by Petrobras, dropped 19.9% to 36 dollars a barrel on the London Stock Exchange.

After heavy losses yesterday, Ibovespa operates slightly higher today; dollar remains above R$ 4.00 in Brazil

After falling almost 3% yesterday (02.10.2019), Ibovespa opened today's session with slightly positive performance, which helps to recover some of the recent losses.

Today (02.10.2019), the dollar continues to fall abroad, which, in turn, produces adjustments in the foreign exchange market in Brazil. This morning, in Brazil, the commercial dollar dropped by 0.25% to R $ 4.1235 in the purchase and to R $ 4.1442 in the sale. The futures dollar for November, in turn, fell 0.23% to R $ 4,127 this morning.

Yesterday, the dollar fell 0.67% to R$ 4,1344 on sale, the highest daily low for a close since September 11 (-0.76%) and the lowest since September 18 (R$ 4.1028).

Retailers lose value at Bovespa (B3) after Amazon Prime launches in Brazil; Shares of B2W (BTOW3), Lojas Americanas (LAME4), and Magazine Luiza (MGLU3) fall

There is a scenario of short-term pressure on the Brazilian Stock Exchange related to Brazilian retail companies. With the start of Amazon Prime direct sales in the country, stocks of Brazilian retailers were the worst performers of the benchmark index of the Brazilian stock market, the Ibovespa.

B2W, Lojas Americanas, and Magazine Luiza were among the biggest losses yesterday. Today this scenario can be repeated. Therefore, the launch of Amazon Prime will bring volatility to the stocks of e-commerce companies in Brazil in the short term.

Amazon Prime came to the Brazilian retail market offering free shipping, movies, and music for $ 89 a year or $ 9.90 a month. Which will give you access to Prime Video, Prime Music and Twitch Prime.

What most stood out in the media was the announcement of free delivery of Amazon Prime to the capitals of the Southeast and South of Brazil, as well as Brasilia and Goiania. Amazon will also offer express shipping at no additional charge from 2 business days, with no minimum purchase value, for products sold under the Prime seal.

Chaotic and volatile week scares the Brazilian financial market; the Ibovespa (IBOV) index varied almost 3 thousand points yesterday

Almost two months after hitting the previously unprecedented 100,000-point mark, the Bovespa Index, the Ibovespa (IBOV), has again curved against the strong risk aversion in the international market. In an environment of intense volatility since June 19, when the Ibovespa it had been holding above 100,000 points, reaching over 105,000 on July 10. From that peak, the international market turmoil coupled with the election results in Argentina and the unpreparedness of Brazilian President Jair Bolsonaro's government to participate in political negotiations in the country and internationally have been holding back the index's advance beyond this level. Since then, the index has fallen by 6.39%.

The actions of the Brazilian Central Bank helped to hold the dollar around the 4 reais, which, in a way, helped calm the financial market a bit.

Today the Ibovespa has opened up, but in recent days the index has shown very large variations. This morning, the index recovered part of the accumulated losses in recent days. A scenario of corrections for the violent falls of recent days.

The financial market in Brazil closes down for the second day in a row; Ibovespa (IBOV), B3's main index, falls below 100,000 points

The Ibovespa closed down today. The index closed the day at 99.056 points, but the drop during the day reached the level of 2%. However, at the end of the day, the index fell 1.2%.

The day on the Bovespa was marked by investors selling stocks and looking for safer assets. It was a flight to quality movement.

Global risk aversion, fearing a new economic recession, has forced the Brazilian Central Bank, for the first time since the 2009 crisis, to announce that it is going into cash to control the rise in the US currency. The Brazilian Central Bank has also announced that it will offer foreign exchange swap contracts.

Today, at an event promoted by BancoSantander in São Paulo, the Minister of Economy, Paulo Guedes, minimized global economic adversity. He said that he had no fear of being swallowed by the international market and that Brazil did not need Argentina to grow its economy.

In fact, the crisis in Argentina has affected and continues to affect the Brazilian economy. Guedes's phrase shows a mixture of arrogance and unpreparedness for the post of Minister of Economy.

The crisis in Argentina, Brazil's third-largest trading partner, affects everything from the Brazilian tourism industry to bus, beer and steel companies. To say that Brazil does not need Argentina is to ignore how the Brazilian economy works.

Bovespa (B3) closed higher in Brazil after the privatization of BR Distribuidora (BRDT3) and the announcement of FGTS money release

The main index of the São Paulo Stock Exchange (B3), the Ibovespa, closed up today, at 104,119 points, after rising 0.4%. The main reason was the privatization of BR Distribuidora. 

The main index of the São Paulo Stock Exchange (B3), the Ibovespa, closed up today, at 104,119 points, after rising 0.4%. The main reason was the privatization of BR Distribuidora. 

BR Distribuidora was up 5% on the stock market after the sale of shares made by Petrobras.

The market also considered positive the policy for the Government Severance Indemnity Fund (FGTS) and PIS-Pasep Fund quotas announced by the government. Workers can now withdraw up to R$ 500 from each active or inactive FGTS account (from current or previous employment).

Ibovespa (B3) closed the day at 103,802 points and fell 0,1%

Following the falls on Thursday and Friday of last week, the Brazilian financial market closed again in decline. The prospect of approval of the Pension Reform in the second half of 2019 only helped to slow the São Paulo Stock Exchange.

According to the G1 website, Ibovespa, B3, "closed down this Monday (15.Jul.2019), with an eye on the local scenario after approval of the main text of the pension reform in the first round in the House and with the definition that the second round will take place only in August."

According to the Focus Bulletin, released today, the Brazilian economy is expected to grow by only 0.81% in 2019. Economists interviewed by the Brazilian Central Bank for the Focus Bulletin have reduced for the twentieth time the Brazilian GDP growth forecast in 2019.

B3: Ibovespa sets a new record and reaches 102 thousand points

The Ibovespa traded today in a high and hit a new record, above the 102 thousand points. In the week, the main stock index of the Brazilian financial market accumulated a gain of 4.05%, the highest increase since the last week of December 2018.

The optimism of Brazilian investors is a direct result of the growing possibility of interest cuts in the United States and the increase in the voting chance of the Pension Reform in Brazil.

The Broadcast website today reported a report in which the analyst at Terra Investimentos Régis Chinchila said that the signaling that central banks in the US and other parts of the developed world can reduce interest rates is positive for Brazil.

Bovespa B3 opens higher today after the Ibovespa closed down yesterday

The main indicator of the São Paulo Stock Exchange, B3, opened higher today (06.Jun.2019), after having retreated more than 1% the day before. The recovery occurs because of the relatively benign scenario abroad.

Yesterday, Ibovespa had shown a fall due to new disagreements between the National Congress and the government of Jair Bolsonaro. The approval of the supplementary credit, aimed at allowing the government to continue to spend above the spending ceiling, was postponed again. This left the Brazilian financial market nervous and the reaction was a downturn on the Stock Exchange (Bovespa). Yesterday, the Ibovespa had a 1.75% drop, the highest since May 16, 2019.

Another factor that displeased the Brazilian financial market was the announcement of possible distancing of the current government from liberal policies. Yesterday, according to Bloomberg, the government of Jair Bolsonaro assumed that it could demand further flexibilization of the limit of public expenses after the ordeal of the Pension Reform. That would throw down the commitment of the minister Paulo Guedes's team to fiscal balance.

Ibovespa falls more than 2%

The main index of the São Paulo Stock Exchange, the Ibovespa, had a very negative result today, May 13, 2019. This was the announcement of retaliation from China to the US surcharge, which began at dawn last Friday.

This dispute between China and the US coupled with the fact that financial market analysts have reduced for the 11th consecutive time their projections for growth of the Brazilian economy in 2019. According to the Focus Bulletin report released on Monday (13) by the Central Bank (BC), the economy is expected to grow only 1.45% in 2019. However, there are analysts indicating that this growth should be around 1%.

This is, for example, the projection for the Gross Domestic Product (GDP) made by Itaú, one of the largest private banks in Brazil. For Itaú, Brazil is expected to grow only 1% in 2019. Itaú also reduced next year's growth forecast from 2.5% to 2%.

Brazilian Congress does not advance in Pension Reform and Financial Market reacts badly

The Social Security reform ended up in the CCJ (Commission of Constitution and Justice) of the Chamber of Deputies. The draftsman of the text of the Pension Reform, Deputy Marcelo Freitas, did not appear in the session.

CCJ president Felipe Francischini, also from the party of the government of Jair Bolsonaro, the PSL, said that Freitas was at a meeting on the text of the Pension Reform, so he had failed. Nevertheless, Freitas had confirmed his presence in the session and, therefore, did not need to have a physical presence. Opposition MPs did not accept Francischini's response and went to the presiding board to pressure him. The session then became a big bustle and ended up being closed.

Freitas, who is from the government party, simply did not appear in Congress. This led to voting in the CCJ for after Easter.

That made the Ibovespa index, the main stock index of the country, to fall at the end of the day. Ibovespa fell 2% after a Social Security vote was postponed at CCJ. The dollar rose 1% and surpassed the R$ 3.94.