The Ibovespa registered its seventh consecutive increase after rising 1.46 in yesterday's trading session (10), to 110,236 points. Brazil's stock market returned to 110,000 for the first time in two months after US inflation data signaled price relief for American consumers.

According to the US Department of Labor, the consumer price index (CPI) was stable (0) in July, compared to 1.3 in the previous month and is expected to rise 0.2.

Over the 12-month period, inflation fell to 8.5 in July from 9.1 in June, below market expectations of 8.7. 

According to William Castro Alves, CFA and founder of Quantzed, the improvement in data boosted the New York stock exchanges and brought down Brazil's main index. In a way, Ibovespa uses US data as a parameter for what we can also expect in Brazil, says the analyst.

Markets now expect the Federal Reserve to ease monetary tightening on interest rates, leaving an estimate of an increase of 0.75pp to 0.50pp in September.

On Wall Street, the Dow Jones advanced 1.63%, to 33,309.45 points; the S&P 500 rose 2.13%, to 4,210.12 points, and the Nasdaq rose 2.89%, to 12,854.80 points.

Today (11) the US indicator agenda includes Producer Inflation (PPI). The data is not as crucial as CPI in the Feds' analysis, but the market is reading the numbers as trend reinforcement.

In Brazil, the scenario of financial and monetary tightening is much more advanced than in the USA. The relief of short-term inflation with the deflation of the IPCA in July reinforced economists' view that the central bank may have ended the high interest cycle, currently at 13.75.

The second hypothesis is that an adjustment in the next Ibovespa session will be of lesser intensity (0.25 percentage points) and will be the last. This perspective has supported the return of appetite for variable income, with a focus on shares in interest rate-sensitive sectors, such as consumer goods.

In the last seven trading sessions, the index has accumulated an increase of 8 while the gains for the entire month of July were 5. 

Today the positive highlights were the Ibovespa IRB (IRBR3) rising 8.93 followed by Banco Pan (BPAN4) 8.15 and Ezetec (EZTC3) 8.09. 

At the end of the loss, the electrical companies had a negative day in the Copels Balance Sheet (CPLE6), which recorded a net loss of R$ 522.37 million in the second quarter and reversed a profit of R$ 1 billion year on year.

Engie (ENGI11) recorded a drop of 1.85 and Eletrobras of 0.72 (ELET3) and 1.46 (ELET6). 

The traded dollar had a day of high volatility, closing at a low of 0.87 and trading at R$ 5.0850 after fluctuating between R$ 5.0359 and R$ 5.1429.

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