O Ibovespa (IBOV) reversed the drop and rose more than 2% this Thursday, reacting strongly to statements by the president Jair Bolsonaro softening the tone in an official note, in which he affirmed respect for the institutions of the Republic.
Before the note, the São Paulo stock exchange still showed fragility due to the worsening of institutional tension after Bolsonaro’s declarations on Independence Day, as well as another strong data from inflation and the mobilization of truck drivers, adding to a list of adversities that has undermined Brazilian actions.
Reference index of the Brazilian stock market, the Ibovespa rose 1.72%, to 115,360.86 points, having reached 116,353.62 points at the best moment of the day (+2.59%). In the low of the session, retreated 0.86%, to 112,435.11 points.
The financial volume of the session totaled 38.9 billion reais.
The day before, the Ibovespa fell by almost 4% after Bolsonaro attacked ministers of the Federal Supreme Court (STF) at demonstrations on Tuesday and threaten to fail to comply with court orders.
this thursday, he said he never intended to attack any of the Powers and that people in power do not have the right to “stretch the rope” to the point of harming Brazilians’ lives and their economy.
The note was published after Bolsonaro met with former president Michel Temer, in Brasília.
For the analyst of Clear Corretora Rafael Ribeiro, Bolsonaro “put warm cloth” on his latest statements, reducing risks, which was answered by investors.
Despite the relief, the Brazilian market scenario, with doubts about the progress of the economic agenda, water crisis, high inflation and movement of truck drivers, among other factors, should continue to dictate volatility.
These components, combined with noise from abroad, take away the investor’s visibility, according to Naio Ino, head of the Western Asset equities desk. “The moment continues for caution.”
Abroad, the S&P 500 index ended lower after weekly US unemployment claims assuage fears of a slowdown in the economic recovery, but feed fears that the Fed may act sooner than expected.
B3 (B3SA3) advanced 3.89%, after plummeting more than 8% the day before, with the financial sector reacting.
Between banks, Itaú Unibanco (ITUB4) earned 1.32% and Bradesco (BBDC4) rose 0.43%.
Interbank (BIDI11) closed up 5.81%
Weg (WEGE3) jumped 6.44%, pulling the valuation in September to more than 9%.
Petrobras (PETR4) rose 2.12%, following the improvement in the environment, despite the weakness in oil prices abroad, while financial agents continue to monitor the mobilization of truck drivers.
Valley (VALLEY3) fell 0.36% in the wake of the fall of the most active iron ore contract in Dalian, China, while other papers in the sector engaged in a recovery after a sharp decline the day before.
Vale earlier released an update of estimates for cash disbursement in 2021.
Csn (CSNA3) increased by 2.98%.
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