For those who thought that the Ibovespa would continue to fall, they were in for a surprise this week: the stock markets in Brazil have been operating at a high level, which is very good for the country that has been recovering from the biggest health crisis in recent times.
According to official information and the country's largest economic portal (Valor Econômico) our Ibovespa, Trading began this past Wednesday, April 8th, without assuming a defined direction, just floating around stability.
However, a new development in the political scene in the US boosted the stock markets there — and took the Brazilian stock market along for the ride.
Growth of Ibovespa in recent days
What do the official figures and Brazilian experts say? The outlook is somewhat encouraging. This week alone, the Ibovespa index rose 3.171 points to 78,729.40 points, while the Brazilian index fell to its lowest point (-0.321 points).
As far as we know, abroad, European stock markets closed with a slight decline, however, in the United States, the Dow Jones had a result equivalent to (+3,23%), while the S&P 500 (+3,22%) and the Nasdaq (+2,49%) advanced as a block.
Sharp drop in the dollar against the Brazilian stock market
However, we see that in the exchange rate, the dollar had an unexpected drop of 1.46%, at R$ 5.1500, after touching R$ 5.2487 (+0.43%) at its maximum — domestic factors also influence the behavior of the American currency this Wednesday.
Why is this happening?
The market says that the rise in the Ibovespa and US stock markets occurred after 11:30 am, when Senator Bernie Sanders' withdrawal from the race for the Democratic Party's nomination for the White House was finally made official, paving the way for former Vice President Joe Biden.
In the international and financial markets, Biden is seen as a more moderate candidate—and this characteristic has attracted the wing of the Democratic Party that feared Sanders' more radical proposals. This profile of the former vice president also appeals to Wall Street, which reacted positively to the news.
Coronavirus and Ibovespa, the scenario is still complicated
Don't get too excited, we're going through the biggest crisis of all time. Covid-19 infection rates are showing a stabilizing trend in Europe and the United States. The fact is, the number of new cases and deaths from the disease remains quite high in both regions.
This should be a reason for a lot of action, care and compliance with social isolation.
According to data from Johns Hopkins University, 1.44 million people have already been infected worldwide, with more than 83,000 deaths. In the US alone, nearly 400,000 people have been diagnosed with the coronavirus.
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Source: Infomoney and Valor Econômico