The Sao Paulo stock exchange closed the first week of Jair Bolsonaro in power, defeating its third consecutive record Friday, although prudence appeared in the midst of a wave of optimism because of the ultra-right leader's statements that created some confusion.
Bolsonaro took office on Tuesday, January 1, and the second day the Ibovespa index closed for the first time more than 90,000 points (to 91,012), with an increase of 3.56%; on Thursday, the increase was 0.61% and on Friday 0.3% (at 91,840 points). In this last session he reached over 92,000 points, animated by good employment data in the United States and Fed President Jerome Powell's cautious comments on interest rates.
In this way, Ibovespa's total assessment since the last session in 2018 was 4.5%.
Real, on the other hand, had the highest weekly rating in three months and was closed at $ 3,713 / dollar, compared to 3,874 on December 31. The Brazilian currency appreciation this week was 4.32%.
But the former military controversy for 63 years has calmed the initial big trag with several statements, which means that, for example, reform of the pension system, considered vital by the markets to mitigate Brazil's frightening tax situation, He would be less daring than he expected.
For Capital Economics consulting, the Brazilian market "have had a strong performance" this week drawn by the optimism surrounding Bolsonaro's promised reform agenda, including a broad privatization program, a reduction in the size of the state and public spending.
"But we think that this comeback could lose momentum in a short time … There is still little evidence that Bolsonaro and his economic team can promote satisfactory pension reform in the extremely fragmented Congress of Brazil.", they stressed.
Bolsonaro has created a disorientation and expressing his "preoccupation" on Friday for the future of the Brazilian Embraer aircraft manufacturer, after his alliance with the American Boeing.
"This merger would be very good, but we can not, as in the last proposal, [dejar] that in five years everything can be transferred to the other side "he said.
Following these statements, Embraer's ordinary shares collapsed by 5.02%, the biggest drop in the shout.
(With information from AFP)