Ibovespa without direction: three definitions can unlock the stock market
EQI Research analyst points to economic policy, choice of Finance Minister and tax signs as keys to recovery
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 2 MIN

The Ibovespa continues without clear direction, and the lack of direction has weighed on the main index of the Brazilian stock exchange. According to Money Times, analyst Nícolas Merola, from EQI Research, identifies three factors that could unlock the market.
The first point is the direction the government intends to take with its economic policy. The second is who will occupy the Finance portfolio from now on. The third is the signs that will come about tax policy. According to Money Times, analyst Merola believes that these three points should be decisive in reducing uncertainty and making room for a recovery in the stock market.
What is at stake goes beyond the fluctuation of a trading session. For the reader who advocates fiscal responsibility and lower taxes, the combination of economic policy, control of the Treasury and taxation is precisely the type of signal that guides the confidence of those who invest in the long term.
In an interview with Giro do Mercado, broadcast on YouTube by the Money Times channel, Merola said that, until there is more clarity, Ibovespa is most likely to continue moving sideways. In practice, the term describes an index that oscillates within a range, with no defined upward or downward direction.
According to the analyst's reading, the trigger for a recovery is not in the numbers of one day, but in decisions still pending about the country's direction. Until these definitions arrive, the expectation of a firm trend tends to be postponed.
What changes for the investor
The scenario described by Merola indicates that the index may remain sideways as long as uncertainties persist. For those who invest, the three points mentioned serve as references to follow in the coming weeks, as each of them can change the reading of the business environment. This text does not constitute a recommendation to buy or sell assets.
Automatically translated from Portuguese.


