Information showing a double-digit increase in China’s imports in September boosted product costs and led the Brazilian stock exchange index Ibovespa to climb up 0.41% Friday to 76,977.68 – a new record closing level. Vale’s shares, an index heavyweight, increased 6%, improved by higher iron ore costs.
“China’s trade balance shocked and came in very strong. Iron ore prices were up 4%. Information regarding iron ore consumption in September revealed that China is increasing its stocks for the winter. That was excellent for Vale’s shares,” stated Magliano Corretora’s analyst Pedro Galdi.
Steelmakers shares likewise benefited from higher commodity prices. Usiminas, CSN and Gerdau ended the session 6.39%, 5.9% and 3,47% higher, respectively, as well as Fibria stocks, which increased 2.11%. China is the main market for the business’s items.
The primary economic expert of Gradual Investimentos, Andr? Perfeito, included that United States inflation information, which revealed a smaller-than-expected increase in customer rates last month, added to the Brazilian stock exchange favorable performance.
Galdi projections that the Ibovespa could reach 77.000 points on Monday, as traders brace to the local corporate revenues season an to a much awaited Congress vote to the pension system reform costs.
Perfeito anticipates potential upward pressures on oil prices – and to the Ibovespa also – as tensions between Iran and the United States construct.
The locally traded U.S. dollar fell 0.69%, to R$ 3.1500, as low inflation in the United States increased the possibilities of a more steady rise in the country’s rate of interest.
“Markets were anticipating a somewhat stronger inflation. Because the number was listed below expectations, there was a correction. And there was likewise less liquidity” because of the recent holiday in Brazil, said Haitong Brasil financial expert Fl?vio Serrano.
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