After the stock market had the biggest drop in history this Monday (8), the Brazilian market reacted this Tuesday, recovering. The Ibovespa, the main index of the Brazilian stock market, closed up 7.14%aos 92,214.47 points. Its highest daily appreciation since 2009.
Vale's shares stood out with a jump of more than 18%. And Petrobras also reacted after the drop of almost 30% the day before. The dollar fell to R$ 4.64.
In the United States, President Donald Trump has promised, in addition to a payroll tax cut, financial aid for those who have hourly work contracts. Measures to help workers hit by the coronavirus and generate stimulus in the economy. Adding to incentives for the tourism industry.
The Ibovespa reflected the economic stimulus proposals and closed at its highest in eleven years this Tuesday (10th). Since this morning, the stock market was already recovering after the great tension in the markets the day before. Investors were still encouraged by the news that the Russian Energy Minister had called a meeting to discuss cooperation with the Organization of Petroleum Exporting Countries (OPEC).
The commodity, after collapsing yesterday, oil recovers. The Brent barrel – used as a reference by Petrobras – rises 9.98% to US$ 37.79, while the WTI barrel advances 11.47% to US$ 34.72.
The Ibovespa registered an increase of 7.14%, at 92,214 points, with a financial volume of R$ 39.992 billion. It was the biggest rise since January 2, 2009, when the stock rose 7,17%.
Dollar fell in the day
The commercial dollar was down 1.69% to R$ 4.6444 on buy and R$ 4.6457 on sell, its biggest drop since September last year. Dollar futures for April are down from 1.57% to R$ 4.659.
In the interest rate futures market, the DI for January 2022 dropped 11 basis points to 4.52%, the DI for January 2023 dropped 18 basis points to 5.20% and the DI for January 2025 dropped 20 basis points at 6.20%.
Situation in China
In China today, President Xi Jinping paid a visit to the city of Wuhan. City epicenter of the coronavirus outbreak that broke out on January 22. Xi's visit favored Asian stocks, which closed higher. The country announced an improvement in the situation, with only 19 new infections, the lowest number since January 18. Different from the progressive expansion that is taking place in Italy.
In Japan, the government assured that fiscal stimulus measures are on the way, which calmed investors.
In Brazil, among the indicators, industrial production increased 0.9% compared to December 2019 (seasonally adjusted series), interrupting two months of subsequent negative rates, which accumulated a decrease of 2.4%, according to data presented by the Brazilian Institute of Statistical Geography (IBGE).
Economists consulted by Bloomberg are expecting a positive variation of 0.6% on a monthly basis.
US policy
The United States Democratic Party held primaries today in six states: Michigan, Missouri, Washington, Idaho, Mississippi and North Dakota.
Joe Biden, a former vice president, is a favorite in the state of Michigan, where he is favored by the African-American population and the college-educated middle class, while Senator Bernie Sanders is favored by the younger electorate. Sanders, who was defeated on Super Tuesday, needs to at least win Michigan, which has 125 delegates, to win the fight back.
corporate news
The construction company Helbor, from São Paulo (SP), informed that it will issue simple debentures to raise the amount of R$ 47 million. Petrobras announced that it sold four natural gas fields in the interior of Bahia to Eagle Petróleo e Gás, for US$ 3.01 million. CPFL – Companhia Paulista de Força e Luz, and Direcional Engenharia, published balance sheets last night.
