2018.06.2519:23:00UTC+00BRAZIL: Ibovespa Rises Boosted By Good Performance From Petrobras

The Ibovespa took off from foreign markets to rise 0.44% at 70,952.97 points Monday, boosted by the shares Petrobras (PETR3 +2.19% PETR4 +4.03%) and B3 (+4.70%) and for the filing of the appeal of the trial of Luiz Inacio Lula da Silva in Brazil's Supreme Court (STF).

"There was a day of greater volatility here. Petrobras is pulling the Ibovespa amid the expectation on the transfer of rights and that oil prices should remain higher after the meeting of the Organization of Petroleum Exporting Countries (OPEC). The Ibovespa was also influenced by the decision of the Supreme Court, which reduced Lula's risk in the elections," said Rafael Passos, an analyst at Guide Investimentos.

Regis Chinchila, an analyst at Terra Investimentos, recalled that Petrobras has entered into an agreement in the United States to terminate a class against the company in the country. In the case of B3, the stock again attracted investors after having touched the lowest price in almost a year last week.

Abroad, the possible U.S. barrier to Chinese investments in U.S.-based tech companies has raised investor concerns about the trade war and has impacted commodities overall.

Among the biggest falls of the day are Gol (-4.32%), Sanepar (-3,69%) and BRF (-3,44%).

Meanwhile, the locally traded U.S. dollar closed down (-0.07%), quoted at R$ 3.781, after having spent most of the session trading lower, with investors waiting for the Central Bank line auction in which a US$ 500 million proposal was accepted. The move was taken off the external scene, where the greenback rose at a global level.

For Tuesday, the release of the minutes of the meeting of the Monetary Policy Committee (Copom) and the expectation on the Quarterly Inflation Report (RTI) - to be published later this week - should call attention to the market.

According to Passos, the outlook for the Ibovespa tomorrow is bearish, since the external news should influence the Brazilian investors. Chinchila expects volatility in the Brazilian benchmark stock index.