The Brazilian Stock Exchange advanced this Friday (11), showing signs that it will close in the blue for the fifth consecutive week. Since December 2020, when it completed a seven-week upswing cycle, the country’s stock market hasn’t had such a long period of rally.
At 11:59 am, the Ibovespa rose 0.81% to 114,292 points. If it stays positive until the end of the session, the benchmark stock index will also complete the fourth day in a row with gains. The dollar fell by 0.74% to R$5.2020. The fall in the US currency indicates a correction movement from the previous high.
The explanation for this positive period for the stock market at the beginning of the year comes from abroad. Foreign investors are selling off equities that have appreciated strongly, particularly in the US market, and which are now suffering a sharp correction on the expectation that the Fed (Federal Reserve) and other central banks will raise their interest rates to fight a wave of global inflation. .
“With the prospect that the Fed will take stricter measures to contain US inflation, global investors sought more discounted assets, boosting the inflow of foreign capital to the Brazilian stock exchange. Thus, the stock exchange remained positive, with highlights for the shares of Vale, Petrobras, Bradesco and Itaú”, summarized Genial Investimentos in its daily report.
The stock exchange and the real suffered strong devaluation last year due to the tension generated by the anticipation of the electoral dispute. The Ibovespa dropped almost 12% in 2021.
Expectations for the Brazilian stock exchange in 2022 were also down due to the pressure that the electoral dispute usually exerts on public spending, compromising investors’ assessment of the government’s ability to execute the Budget.
There is still no consensus among market analysts on how long the positive scenario for Brazil will last. The maintenance of the appreciation of the main local commodities is seen as the key to this balance.
This Friday morning, Brent crude was up 1.03% at US$ 92.35 (R$ 481.09). The commodity remains on the rise amid expectations that the crisis involving Western powers and Russia affect supply. Russians are among the top global producers of oil and natural gas.
In the United States, the stock market opened mixed, showing signs of correction after the strong lows recorded the day before.
The Dow Jones and S&P 500 indexes rose 0.24% and 0.15%, in that order. The indicator on the Nasdaq technology exchange fell 0.30%.
This Thursday (10), stock markets were impacted by information that consumer prices in the United States rose solidly in January, with the biggest annual increase in inflation in 40 years.
The index rose 0.6% last month after rising 0.6% in December, the Labor Department said. In the 12 months through January, the index jumped 7.5%, the biggest annual increase since February 1982, and after an increase of 7% in December.
The jump marks the fourth consecutive month of increases of more than 6% on an annual basis. Economists polled by Reuters predicted a 0.5% rise for the index in the month and a 7.3% increase on an annual basis.
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