The Bovespa Index (Ibovespa) closed at a slight high on Wednesday (28), failing to accompany the highs of the external financial market, registering a slight recovery after three straight sessions of decline.

The stock market operated between high and low, closing up +0.07%, at 108.451 thousand points.

At the low of the day, the B3 stock index reached 107.914 thousand points, and at the high of the day, 108.970 thousand points.

The financial turnover for the day was R$ 20.60 billion.

The Real Estate Funds Index (IFIX) fell by -0.14%.

Financial Market

In the financial market highlights, Petrobras (PETR4) disclosed a prospectus for the issue of a Certificate of Real Estate Receivables (CRI) in the amount of up to R$1.8 billion.

Petrobras’ CRI is divided between an initial lot of R$1.5 billion and the possibility of an additional R$300 million. The issue will be made by Opea, backed by the oil company’s commercial notes, and will occur in up to three series, maturing in 2029, 2032 and 2037, respectively.

In addition, Raízen (RAIZ4) announced on Tuesday (27) that it will pay R$ 326 million in dividends for those who hold company shares on September 30, 2022. The amount of the proceeds will correspond to R$ 0.031594 per share, with payment until October 13, 2022.

CSU CardSystem (CARD3) has announced that it will pay R$ 6.5 million in interest on equity to holders of its shares on September 30, 2022.

Corporate News

In the corporate world, Petrobras (PETR4) announced on Wednesday (28) the third consecutive drop in the price of aviation kerosene (QAV), following the reduction of oil prices in the international market. The price will fall 0.84% starting October 1st for distributors, the state-run company informed. In August, the reduction was 2.6% and 10.4% in September.

WEG (WEGE3) informed on Monday (26) that it will invest R$ 660 million over the next three years, to expand its production capacity of industrial motors and electric traction in Brazil. In addition to the expansion of the component manufacturing and export logistics buildings, a new plant dedicated to industrial engines and mainly engines for the electric mobility segment will also be built.

Furthermore, Embraer (EMBR3) informed today that it delivered to the Brazilian Army the first two units of the Saber M60 radars, in their 2.0 version, which will be used in the Anti-Aircraft Artillery Units.

The National Telecommunications Agency (Anatel) has approved TIM’s (TIMS3) new offer for wholesale roaming, aimed at mobile virtual network operators (MVNOs).

Banco Central do Brasil

Economic News

In the economy, the average interest rate of free and directed credit had a slight drop in August, but maintains the tendency to rise in 12 months, according to the Monetary and Credit Statistics released today (28) by the Central Bank (BC).

The Trade Business Confidence Index (Icec), released yesterday (27) by the National Confederation of Trade in Goods, Services and Tourism (CNC), fell 2.6% from August to September, reaching 125.5 points.

Moreover, the Industry Confidence Index (ICI), calculated by the Brazilian Economic Institute, Getulio Vargas Foundation (FGV/IBRE), dropped 0.8 points in September and reached 99.5 points, but in quarterly moving averages the drop was 0.6 points.

International News

In the US, the US central bank has been raising interest rates rapidly to deal with very high and persistent inflation and will likely bring US short-term borrowing costs to where they need to be early next year, Chicago Federal Reserve President Charles Evans said Wednesday.

The U.S. government is working with allies to quickly impose severe economic costs on Moscow over “sham” referendums held by Russia in occupied regions in Ukraine, according to a statement by the U.S. State Department’s head of sanctions coordination on Wednesday (28).

In Europe, the Bank of England (BoE) bought 1 billion pounds in long-term government bonds (gilts) on Wednesday, 28, in its first auction under the new program established earlier. Under the initiative, the BoE said it would buy up to 5 billion pounds in bonds per day.