Shares in Brazil rise strongly and infect Merval which rises by 3%

Share This Post

- Advertisement -

The Buenos Aires stock market starts the month higher, supported by a festive market in Brazil, where the polarization of the results between Lula Da Silva and Jair Bolsonaro excites investors who read that Lula will have to make a move towards the center to try to win in the second round, on October 30th. The The Bovespa index leaps by 4% and infects Merval, which at the opening increased by 3%.

- Advertisement -

This Sunday Lula da Silva took advantage of the first round of the presidential elections in Brazil, with 48% of the votes. But his rival Jair Bolsonaro got much higher support than expected, 43%, which bodes well. a second closed round and a predictable round in the center of Lula. In this framework, the Brazilian real has highest daily rise since June 2020,

The Brazilian real received the election result with a notable rebound of more than 3%, to 5.21 units per dollar, which extends the appreciation of the Brazilian currency so far this year to 6.5%, defying rate hikes in the US and the strength of the dollar globally.

- Advertisement -

On Wall Street, too, there is a better climate on the markets: the main indices are rebounding after ending September in deep red. With the Dow Jones index in the lead, the three New York Stock Exchange indicators are trading positive this Monday. This is the basis of Argentine stocks listed on this market: ADRs increased by almost 8%, as in the case of the YPF.

This environment is more favorable for the Argentine stock market which, in contagion mode, rose 3% in the first round of the month. Also rebounds in the debt sector: dollar bonds rise up to 4.3%.

PPI analysts noted: “The month of October starts with the world’s major indices taking a breath of fresh air this morning. Major long rates ease their climb, although the US dollar remains steady, with the index DDXY above 112. universe be able to take advantage of this brief impasse in the risk-off trend seen in recent days in global markets?


Source: Clarin

- Advertisement -

Related Posts