2018.02.1918:45:00UTC+00BRAZIL: Stocks Rise As Economic Activity Data Surprises Investors

Ibovespa, the benchmark stock market index in Brazil, rose 0.32% Monday to 84,792.71 points, boosted by positive economic activity data. Expiring options helped to offset the adverse effect of a U.S. holiday on trading volume.

According to Vitor Suzaki, an analyst at Lerosa Investimentos, the Brazilian central bank index of economic activity in December rose more than expected and encouraged investors.

According to the partner of DNAinvest, Leonardo Ramos, the lack of external interference caused the Brazilian market to continue its "natural" path of a slight increase.

Markets also ignored the potential halt to the pension reform bill in the House of Representatives. According to Ramos, investors gave up on expecting a pension reform this year.

Gerdau shares increased 5.02%, enjoying a late boost from the last week news that the US Commerce Department wants to add barriers to steel imports.

"Gerdau would benefit from this because it produces there and can gain market," said Ramos.

Fibria shares rose 3.51%, and Suzano stocks advanced 3.22% on market expectations with talks are being held on a possible combination of assets.

The locally traded U.S. dollar ended up 0.43%, at R$ 3.236, in a trading session marked by lower liquidity due to a holiday in the United States. With few fluctuations throughout the day, the appreciation was influenced by the external market, where the greenback rose against currencies amid the absence of significant indicators.

For Tuesday, Ramos expects that the Ibovespa will continue rising. For Suzaki, the release of the minutes of the last FOMC meeting may bring volatility to the market.