Ibovespa, the benchmark stock market index in Brazil, interrupted a sequence of 11 sessions trading higher and ended down 0.65% at 78,863.54 points TUesday as investors took profits.
According to Rog?rio Freitas, an analyst at Floren?a Investimentos, risky assets showed a more negative performance today globally.
“There has been an upward movement in global interest currencies today, causing risky assets to perform poorly,” he said.
Investors also continue to watch Brazil’s fiscal issue and the government’s articulation to approve the pension reform bill and saw the difficulties faced by president Michel Temer to nominate a new labor minister as a setback to those efforts.
Banking sector shares, such as Ita? Unibanco (-1.06%), were down. Vale’s shares (-0.28%) also ended lower, while CSN shares (+2.21%) had the best performance amid Ibovespa’s constituents amid rumors that it may sell its stake in Usiminas.
Meanwhile, after breaking the level of R$ 3.25 throughout the day, the locally traded U.S. dollar closed up 0.27%, at R$ 3,247. The rise came after the losses recorded last week, with investors seeking correction on a global scale.
Despite the downturn, investors have kept an optimistic tone with the Brazilian scenario and the U.S. stock markets in historic highs.
“The bias is still positive,” wrote economist Ignacio Crespo Rey from Guide Investimentos.
For Magliano Corretora’s analysts, the profit-taking movement should also not be “traumatic” and should “represent only a technical adjustment to the continuous cycle of recovery since the beginning of this year.”
On Wednesday’s agenda, the highlight is the official data on inflation for December and 2017 as a whole.
The material has been provided by InstaForex Company – www.instaforex.com
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