O Ibovespa hit the third consecutive high this Tuesday, favored by the advance of stock exchanges abroad and the high of commodities like the Petroleum and iron ore, with the shares of GPA spearheading the gains.
The decision of China to relax some quarantine requirements against the Covid-19 corroborated the positive bias in the markets abroad, as it supports hopes of resumption of global growth.
At 10:54, the Ibovespa rose 1.22% to 101,993.30 points. At the maximum so far, it reached 102,237.09 points. The financial volume totaled 3.75 billion reais.
China has halved the quarantine time for travelers arriving in the country, a restriction that has hampered travel in and out of the country since 2020 and has slowed economic activity.
Beijing and Shanghai also reported no new local Covid-19 infections on Tuesday. This is the first time that the two cities have not recorded cases simultaneously since the end of February.
In Wall Street, the S&P 500 was up 1%.
“The Chinese government’s decision to relax quarantine rules, including for foreigners, continued to bring relief to risk aversion”, evaluated the team from Bradesco’s economics department, in a note to clients.
They considered, however, that concerns with persistent inflationary pressures and the impacts on economic activity, due to the stricter stance of central banks, continue to limit the recovery of markets.
highlights
OK (VALE3) was up 1.7% as the price of iron ore hit a one-week high on Tuesday. The prices of other steel inputs and products also rose.
Petrobras (PETR3; PETR4) rose by 2.3%, having on the radar that it restarted the processes of sale of refineries in Pernambuco, Paraná and Rio Grande do Sul, as well as the logistics assets integrated to them.
GPA (PCAR3) gained 4.6%. Itaú BBA analysts resumed coverage of the paper with an “outperform” recommendation and a target price of 32 reais, according to a report to clients at the end of Monday, seeing a positive risk/return ratio.
BB Security (BBSE3) rose 2.85%, one day after announcing that it would allocate 80% of its first-half profit to dividends. Itaú BBA also raised the stock’s recommendation to “outperform”, with a target price of 32 reais.
CVC (CVCB3) was up 1%, after six straight falls, when it lost almost 16%. The rise follows the advance of stocks linked to overseas travel following the news from China. Blue (BLUE4) gained 2.8% and Goal (GOLL4), 1.6%.
IRB (IRBR3) lost 1.7%, in the fifth consecutive session in the red, since it reported a loss in April, which raised concerns about a possible need for a capital increase by the reinsurer.
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
