Uncertainty surrounding the degree of support for the pension reform bill in Congress continued to worry investors and lead the Ibovespa to close down 1.07% Thursday at 72,487.46 points.
In a day marked by extreme volatility, the local market took a cautious stance as the window to vote the pension reform bill in the House of Representatives this year diminishes. The perception of country risk increased and also weighed on the real. The locally traded U.S. dollar closed up 1.73%, at R$ 3,287.
"As long as there is no definition on the pension reform vote, this instability should continue. There has also been a bad signal about a possible indefinite schedule," said Jos? Costa, an economist at Codepe Corretora.
During the day, the Brazilian House of Representatives Speaker Rodrigo Maia said that the government is "facing a hard time to get enough votes" for the pension reform bill. "But we will get there," he added.
Maia also noted that he would try to work to approve the reform using all available dates before the parliamentary recess, as of December 22.
"The Chamber works until the 22nd. We have to work with all possible dates."
Platinum Investimentos manager Christian Laubenheimer believes that the market is already starting to price that there will be no voting this year, which gives room for some improvement if positive indications reappear. Volatility, however, should continue to prevail in the coming days, analysts believe.