May, typically a month of poor performance on capital markets around the world, brought more favorable winds to approve the Brazilian Pension Reform - and the investor was able to take advantage. Despite disagreements between the government and Congress, which reached their worst point at the beginning of the previous month, there was an inflection this month, marked by the less bellicose attitude of President Jair Bolsonaro and the greater popular pressure for Congress to engage in the adoption of guidelines citizens, such as the resumption of the economy and public security.
Thus, we entered in June with most of the agenda of provisional measures proposed by Bolsonaro at the beginning of the mandate approved or in the process of being approved, and others with a chance to advance in the form of bills. In relation to Welfare, the balance is positive: the latest attempt to sabotage the project to blame the government did not work. This led the Bovespa index to close the month with appreciation of 0.70%, despite the fall of today - the first in five trading sessions. Vale and Petrobras dragged the Ibovespa index down 0.44% on Friday. The bad day did not shake the good sequence brought by the index, which closed up for the second consecutive month, the best sequence since the gains seen between September and November 2018.