On a day marked by a well-contained June IPCA-15 (consumer price index) but also by statements from President Luiz Inácio Lula da Silva criticizing “Faria Lima” and another deficit in the Central Government’s accounts, the Ibovespa fluctuated in the afternoon between slight losses and moderate gains. This occurred despite continued pressure on the exchange rate, which pushed the dollar to R$5.52 at its peak this Wednesday, along with a rise in domestic interest rates. The index fluctuated by just under 1,300 points between the low (121,402.00) and the high (122,701.20, +0.30%), nearly at the close of the session, still up 0.25%, at 122,641.30. Today, it opened at 122,331.39 points, with a turnover of R$19.3 billion on Wednesday.
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Released by the Treasury this afternoon, the central government’s primary result in May, showing a deficit of R$60.983 billion, confirmed that the government is achieving significant gains in revenue collection. However, the magnitude of the increase remains below the rise in expenses, says Buysidebrazil economist Italo Faviano, as reported by journalist Daniel Tozzi Mendes from Broadcast.
Thus, the imbalance between revenues and expenditures persists, fueling the market’s narrative that an effective adjustment to public accounts will depend on spending cuts. Compared to the same period last year, revenue saw a real increase of 8.3%, while expenses rose by 14.0% […].
