The result of the first round of elections brought euphoria to the Brazilian stock exchange this Monday, 03, with the Ibovespa closing the day with a high of 5.54%, at 116,134 points, the best daily performance since April 2020. The dollar fell 4.07% to R$ 5.1746.

This movement should also extend through Tuesday 04, also reflecting the international scenario that awaits employment data in the United States.

At 09:25, Ibovespa Futures gained 0.90% and the dollar fell 0.92% to R$ 5.1195.

In the US, the Nasdaq 100 futures were up 2.08%, while the S&P 500 and the Dow Jones advanced 1.73% and 1.44%, respectively.

The dispute between President Jair Bolsonaro (PL) and former President Lula da Silva (PT) is expected to become fiercer, with the former president needing to be clearer about his economic project and the current head of state stepping up his speeches and use of the public machine.

The Planalto announced the anticipation of the payment of the Brazil Allowance and the Gas Allowance for between October 11 and 25, so that the benefits will be received before the vote in the second round. Bolsonaro also announced the intention to distribute a 13th installment of the Brazil Aid for women, which should cost R$10.110 billion.

Today, at 10:30am, the president of Caixa Econômica Federal, Daniella Marques, will hold a press conference on YouTube about Auxílio Brasil.

News of the day

Indebtedness – Every 100 families in the country, 79 are in debt, according to a monthly survey conducted by the National Confederation of Trade of Goods, Services and Tourism (CNC). Most of these debts are not tied to banks, but to services in general, such as electricity, telephone and internet bills, store bills, and car and house payments.

Vehicles – Total vehicle sales fell again in September, after having registered the best result in 20 months in August. A total of 194,000 units were sold, including trucks and buses, a result that is 7% lower than in the previous month, but 25% higher than in September 2021.

Trade Balance – The Brazilian trade balance registered a surplus of US$ 3.993 billion in September, according to the Foreign Trade Secretariat of the Ministry of Economy.

IPC-Fipe – The São Paulo Consumer Price Index (IPC) registered an increase of 0.12% in September, repeating the rate of the previous month, according to the Institute for Economic Research Foundation (Fipe).

Sovereign Credit – The rating agency Moody’s Investors Service said that maintaining the credibility of the fiscal framework after the presidential elections in Brazil will be essential to support the country’s sovereign credit profile. Samar Maziad, Moody’s vice president and senior analyst, highlighted in a statement the close result in the first round of Brazil’s presidential elections, which suggests a close race in the second round and made it “clear that the next government will continue to have to deal with a very fragmented Congress to advance a public policy reform agenda.

Corporate News

Eneva (BVMF:ENEV3) -Eneva concludes the acquisition of 100% of the shares of Centrais Elétricas do Sergipe Participações (Celsepar) and Centrais Elétricas Barra dos Coqueiros (Cebarra). The total value of the transaction was R$6.7 billion, composed of the base value of R$6.1 billion and certain positive and negative components in the form of the Share Purchase and Sale Agreement.

Alliar (BVMF:AALR3) – The Board of Directors of Alliar approved the issue of simple debentures and a private commercial note. The two operations will have a total value of R$ 200 million.

Tecnisa (BVMF:TCSA3) – Tecnisa announced the launch of the first phase of the enterprise Bosque Pitangueiras, in the city of São Paulo. The building will be located in the Perdizes neighborhood and will have a tower with 150 residential units of 2, 3 and 4 bedrooms from 79 to 136 m², totaling a General Sales Value of R$ 218 million, of which 57.5% refers to Tecnisa’s stake.

Fleury (BVMF:FLRY3) – Fleury acquired 100% of the shares of Méthodos Laboratório, Análises Clínicas e Hematologia. The acquisition value is R$27.37 million before deductions and adjustments.

Gerdau (BVMF:GGBR4) – Gerdau announced the execution of a global credit facility of up to US$ 875 million. The maturity is five years from the signing date of the agreement, which has up to seven creditor banks, all first-tier, to be contracted in due course according to the individual credit approval procedures, in the terms and conditions stipulated by the Company.

Omega (BVMF:MEGA3) – Omega announced a capital increase in the minimum amount of R$ 850 million, which may reach up to R$ 1.2 billion. The price of the private capital increase is R$ 16 per share.

Mercado Livre (NASDAQ:MELI) – Mercado Livre announced an initial one-year partnership with consortium administrator Embracon to offer the service on the retailer’s platform.

JBS (BVMF:JBSS3) – The US arm of Brazilian meatpacker JBS is closing its US plant-based foods business, Planterra Foods, after about two years. JBS will focus on its plant-based operations in Brazil and Europe, said Nikki Richardson, a spokeswoman for JBS USA.

Telefonica Brasil (BVMF:VIVT3) has completed the purchase of Vita IT, in a transaction that may reach R$120 million upon the achievement of operational and financial targets agreed between the parties.

Eletrobras (BVMF:ELET3) – Eletrobras sold its entire 1.56% stake in Companhia Energética de Pernambuco (Celpe (BVMF:CEPE5)) to Neoenergia (BVMF:NEOE3) Pernambuco for R$49.033 million.