The Brazilian Stock Exchange rose 1.70% this Monday (6), to 106,858 points, reaching its highest score since November 11th. The dollar advanced 0.28%, to R$ 5.6930, boosted by the global strengthening of the currency.
The Ibovespa, a reference in the domestic stock market, responded positively to the reduction of pressure on fiscal risk after the approval of the PEC dos Precatórios by the Senate last week, and especially to the relatively reassuring news of this Monday about the effects of the variant coronavirus omicron.
An initial study of hospitalized patients in South Africa indicated that symptoms are mild compared to those caused by other variants. The government’s top adviser on the pandemic, Anthony Fauci, bolstered the optimism by declaring that the omicron does not appear to be very severe.
The airlines Gol and Azul soared 11.80% and 10.48%, in that order, on the Brazilian stock exchange. Also benefiting from the reopening, tourism operator CVC rose 5.87%.
In the United States, the Dow Jones, S&P 500 and Nasdaq indices advanced 1.87%, 1.17% and 0.93%, respectively.
Companies linked to tourism and transportation led the gains in the American market. Norwegian and Royal Caribbean cruise lines soared 9.51% and 8.22%. The United airline jumped 8.32%. Vaccine makers Moderna and Pfizer were down 13.49% and 5.14%.
“Today’s upward movement in Brazil and abroad is closely linked to the economic reopening, with the reduction of tensions over the need for possible new restrictive measures to prevent Covid-19 infections”, says Leon Abdalla, investment analyst at Rio Angry.
In addition, the most important producers of commodities for the domestic market showed increases. Vale had a strong gain of 5.54%, in a day of appreciation of iron ore futures contracts.
In the oil market, a barrel of Brent rose 5.08%, to US$ 73.43 (R$ 417.60). This helped Petrobras to rise 0.63%, even on a day when the CVM (Securities Commission) opened a new process to investigate statements by President Jair Bolsonaro (PL) about Petrobras. It is the third procedure involving the president and the state company in just over a month.
Estimates of a 1.5 percentage point increase in the basic interest rate (Selic) had a marginal effect on the stock exchange’s performance, given the enthusiasm of investors with the news about the omicron.
Dollar reaches highest quotation since April 13
The dollar, which closed up 0.28%, at R$ 5.6930, reached its highest quotation since April 13, when it surpassed R$ 5.71. At the highest of the day, the currency reached R$ 5.7020.
The expectation of anticipation of the increase in basic interest rates in the United States has been causing a global appreciation of the dollar and this explains the rise against the real on this Monday, according to Fernanda Consorte, chief economist at Banco Ourinvest.
“The improvement in economic activity [nos Estados Unidos] suggests raising interest rates,” says Consort.
The Fed (Federal Reserve, the US central bank) has made more rigorous assessments of the need to raise interest rates to fight high inflation in the country, which is at the highest level in 30 years, and tends to gain more momentum with the warming of the economy this end of the year.
In the cryptocurrency market, bitcoin recovered from the low at the end of the week and, at the end of the day, rose 3.62%. Since news about the new variant of the coronavirus began to impact investors, on November 26, the cryptocurrency has accumulated 10% losses. For the year, however, earnings are close to 80%.
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