Vale’s impressive dividend, IOF tax hike and other factors moving Brazil’s financial markets
RIO DE JANEIRO, BRAZIL – The international market starts this Friday, 17, without a defined direction. In the United States, the future indexes operate with slight losses, while Europe’s stock markets rise for the second day in a row, with investors reflecting inflation data.
Released early this morning, the consumer price index came out almost in line with expectations in the Euro Zone, advancing from 2.2% to 3% accumulated over 12 months.
In Brazil, investors should reflect the increase in the IOF tax, decreed the day before by President Jair Bolsonaro. The change, which should generate an additional collection of R$12.14 billion, will be in effect until the end of the year. In morning trading, the Ibovespa index fell more than 1% and the USD gained over 1%.
The increase will apply to the credit operations of individuals and companies. The purpose of the tax hike is to make the expansion of the Bolsa Família Program feasible.
Besides tax changes, the trading session at the B3 exchanged is to be influenced again by the Chinese market, where iron ore prices once more closed with a drop, negotiated below 100 dollars per ton in Dalian.
Among the factors that have pressured the constant falls of the metal is the greater control over steel production by the Chinese government, which seeks the decarbonization of the environment by restricting the performance of more polluting steel mills.
The ore’s fall may again impact the shares of Vale (VALE3), which has the largest share of the Ibovespa index. In London, shares of its competitors BHP and Rio Tinto fell more than 2%.
On the other hand, Vale’s shares may benefit this trading session by announcing a dividend of R$40.2 billion, which corresponds to a gross value of R$8.108 per share. The amount to be distributed to shareholders exceeds even the dividends of R$31 billion distributed by Petrobras (PETR3/PETR4) this year.
TC (TRAD3, ex-TradersClub) confirmed the purchase of RIWeb for 6.5 million reais. The acquired company specializes in bringing together all communication activities of the investor relations professional. With 76 listed companies as clients, RIWeb reached R$4 million in the 12 months ended last April.
Allied (ALLD3) announced that it is evaluating the possibility of making a follow-on public offering. For this, the company said it is already in contact with investment banks but that the realization of the offer still depends on market conditions – which have not helped.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+2.22%
172,236.05
+2.22%
71,866.30
+0.66%
10,603.18
+0.13%
2,848,945
—
2,566.28
-0.39%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 172,236.05 | +2.22% | +11.30% | 168,498.45 | 173,272 | 172,211 | — |
| USD/BRL | 5.58 | +1.29% | +4.66% | 5.51 | 5.58 | 5.51 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 44.77 | -0.93% | +38.35% | 45.19 | 45.15 | 44.50 | 5,880,300 |
| VALE3 | 65.07 | -1.57% | -0.11% | 66.11 | 66.11 | 65.01 | 5,478,800 |
| ITUB4 | 41.93 | +0.50% | +6.72% | 41.72 | 42.50 | 41.75 | 5,757,100 |
| BBDC4 | 14.70 | +0.14% | -22.90% | 14.68 | 14.84 | 14.61 | 8,410,100 |
| BBAS3 | 17.12 | +0.59% | -24.89% | 17.02 | 17.17 | 17.01 | 4,207,400 |
| B3SA3 | 14.88 | +0.20% | +13.57% | 14.85 | 15.14 | 14.81 | 10,523,600 |
| ABEV3 | 15.75 | +0.90% | +19.42% | 15.61 | 15.76 | 15.55 | 2,880,800 |
| WEGE3 | 51.75 | +1.99% | +14.00% | 50.74 | 51.79 | 50.84 | 1,223,400 |
| PRIO3 | 59.15 | -0.40% | +50.80% | 59.39 | 59.48 | 58.35 | 1,332,900 |
| SUZB3 | 55.02 | +1.51% | +17.79% | 54.20 | 55.08 | 53.86 | 1,468,700 |
| RENT3 | 30.51 | -1.04% | -27.45% | 30.83 | 31.29 | 30.18 | 1,908,500 |
| AZZA3 | 15.09 | -0.20% | -46.27% | 15.12 | 15.55 | 14.90 | 561,900 |
| CSNA3 | 4.39 | -2.23% | -46.44% | 4.49 | 4.56 | 4.37 | 3,465,800 |
| GGBR4 | 25.21 | +1.16% | +32.25% | 24.92 | 25.78 | 25.14 | 1,766,700 |
| ENEV3 | 27.55 | +0.55% | +42.33% | 27.40 | 27.74 | 27.41 | 365,700 |
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
Brazil runoff, Sunday, October 25: Brazil runoff start time and results schedule. Latest: Brazil runoff polls, Flávio 51%, Lula 49%.