empty
 
 

2017.09.1318:41:00UTC+00BRAZIL: Ibovespa Hits Record For Third Session Despite Political Turmoil

Ibovespa, the main stock index in the Brazilian market, rose 0.33% to 74,787.56 points Wednesday, hitting a record close for the third consecutive session despite the turbulent political scene following the arrest of JBS president Wesley Batista and a new inquiry against President Michel Temer.

The news led Ibovespa to fall in the morning, but in the afternoon the index recovered, boosted by higher oil prices and by the news that the Finance Minister Henrique Meirelles could run for the presidency in 2018.

"The political bias was strong today. Traders celebrated the possibility of Meirelles coming out as a presidential candidate. It is a name that appeals to the market," said Terra Investimentos analyst R?gis Chinchila. The minister, however, denied that he is a pre-candidate on his Twitter account.

Alfredo Sequeira, DNAInvest's CEO, said that "the global situation has helped Ibovespa to remain bullish." He pointed out that Petrobras shares (PETR3 -1.81%, PETR4 -1.07%) improved throughout the day driven by oil prices abroad.

Meanwhile, Vale's shares (VALE3 -1.39%) and steelmakers helped to restrain Ibovespa's rise amid a profit-taking movement.

The locally traded U.S. dollar rose 0.31%, to R$ 3,1390 amid fears that a pension reform vote may be postponed after Brazil's Federal Supreme Court authorized a new probe against Temer.

For the next few days, analysts believe that the focus should continue on the local political scene. The main doubt, however, is whether the new complaint will have the strength to trigger a profit-taking move and led the Ibovespa to fall.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback