Even in the face of a very serious situation that the entire world is going through, the IBOVESPA (Brazil's stock exchange) rose this past Monday, April 13th.
According to information from Economic Value, Ibovespa closed higher today due to news regarding the agreement between the Organization of the Petroleum Exporting Countries and allies (OPEC+) to reduce production of the commodity worldwide.
What happened in the market? The speech by the Saudi Arabian Energy Minister about the effective cuts in oil supply after the OPEC+ pact, which amount to around 19.5 million barrels per day, made this rise in the stock market possible.
This decision takes into account the group's agreement, the commitment of other G20 countries and oil purchases for strategic reserves.
The largest producers of the fuel agreed to cut daily production by 9.7 million barrels per day, mainly with the United States, Canada, Mexico and Brazil agreeing to make smaller cuts.
TRUMP takes new measures, dollar rises to 5.20
In the morning, Donald Trump stated on Twitter (his official communication channel) that the number that countries are actually seeking is a 20 million barrels per day cut in production. The Brent barrel rose from 2.06% to US$ 32.13.
Even with restrictive measures, the coronavirus has already reached 550,000 infections in the United States, with 22,000 deaths.
For this reason, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, like Mandetta in Brazil, has taken a leading role during the health crisis, stating that the “reopening” of parts of the country could begin gradually in May.
Governor Andrew Cuomo (of New York) said the state is “controlling the spread” and that it appears that “the worst is over […] if restrictive measures remain in place, he told local media.
For those in Europe, where the concentration of the virus has also caused great damage, the pandemic is still slowing down. In Italy, for example, 431 new deaths were recorded on Sunday, the lowest number since March 19.
IBOVESPA Growth
The stock exchange in Brazil rose 1,49%, to 78,835 points with a financial volume traded of R$ 17.67 billion.
But at the end of the day, the dollar futures for May have gains of 1.37% to R$ 5.20. The commercial dollar, in turn, showed an increase of 1.86%, to R$ 5.1825 in the purchase and R$ 5.1855 in the sale.
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Source: Economic Value