Ibovespa rises 1.5%, but the policy limits profits this Friday; dollar advanced 2.85% in the week

SAO PAULO – Ibovespa closed higher on Friday (17), but cut earnings in the afternoon amid concerns from investors that the confrontation between President Jair Bolsonaro and Congress could hamper the progress of reforms after the end of the coronavirus crisis, which would have a negative impact on the economy.

This was in addition to the natural movement of investors who reduced comparative positions to zero before the weekend with a long holiday in Tiradentes on Tuesday (21). There will be no negotiations at B3 on Tuesday and the volume on Monday (20) should be reduced.

As a result, there was a gap between the performance of the Stock Market here and abroad. The Dow Jones, S&P 500 and Nasdaq indices rose between 1.4% and 3% amid global optimism with the promising results of the drug Remdesivir in the fight against the coronavirus.

A group of 125 patients received the medication and, in less than a week, almost all were discharged, with only two deaths. The drug’s developer, biopharmaceutical Gilead, saw its shares rise 9% today. However, it is important to remember that Gilead herself said in a statement to Reuters that “all data must be analyzed to draw conclusions.”

In addition, the President of the United States, Donald Trump, announced yesterday guidelines for the reopening of the world’s largest economy after weeks of quarantine to try to stop the spread of the coronavirus. According to Trump, the process will be gradual and will take place in three phases. See how the launch will work.

With this news, the result of China’s Gross Domestic Product (GDP) in the first quarter was left out. The country had a 6.8% retraction in its economic activity, a figure worse than expected by the market, since the Bloomberg consensus pointed to a 6% contraction. It was the first negative result in Chinese GDP in 28 years.

The Ibovespa increased 1.51% to 78,990 points, with a financial volume of R $ 19.76 billion. In the week, the Stock Market rose 1.68%, in trading sessions marked by the slowdown in the number of cases and deaths from Covid-19 in Italy and Spain, in addition to the relief with the agreement of the Organization of Petroleum Exporting Countries and allies (OPEC +) to reduce world oil production.

To read about the highlights of the actions in this session, click here.

The future dollar for May, on the other hand, registered a slight positive variation of 0.06% to R $ 5,241. The commercial dollar closed the day with a drop of 0.39%, to R $ 5.2329 for the purchase and R $ 5.2359 for the sale. During the week, the US currency appreciated 2.85% against the real.

In the future interest market, the DI for January 2022 fell three basis points, at 3.61%, the DI for January 2023 also fell by three basis points, at 4.57%, and the DI for January 2025 recorded losses of five points basic, to 6.04%.

Politics

President Jair Bolsonaro accused the president of the Chamber of Deputies, Rodrigo Maia (DEM-RJ) of conspiring to remove him from power. “It seems that the intention is to get me out of the government. I want to believe that you are wrong, ”said the representative. Maia replied that Bolsonaro is trying to divert attention from the resignation of Health Minister Luiz Henrique Mandetta, who was fired yesterday by the president. “He will have no attacks on me,” said Maia. See more by clicking here.

Bolsonaro appointed Rio de Janeiro oncologist Nelson Teich, 62, to head Health. In a life on Facebook with Teich, the president again criticized governors and mayors for social isolation measures to delay the spread of the coronavirus. Bolsonaro’s speech was accompanied by pots in São Paulo, Rio de Janeiro and Brasilia.

Pandemic

The city of São Paulo already has three ICU hospitals located in the Eastern Zone. With the ICU capacity in most hospitals in the São Paulo Metropolitan Region, the state government is studying the transfer of patients affected by the coronavirus to the interior, where the pressure for care is still not as strong, reports the newspaper. The state of S. Paulo. In Ceará, the specific ICU patient beds in Covid-19 are already full.

The average was carried out five days ahead of schedule and it is estimated that 250 people will die of the disease per day from May 5, in case the state government does not expand the infrastructure, reports the Folha de S. Paulo. According to the newspaper article The balloon, there is a risk of collapse in public health networks in the states of São Paulo, Rio de Janeiro, Pernambuco, Amazonas and the Federal District. The federal government can negotiate with private hospitals to strengthen beds. Last night, Brazil had 30,425 confirmed cases of coronavirus and 1,924 deaths.

Corporate news

The construction and real estate developer company Helbor published a preview of the first quarter of 2020 and reported that it had sales of R $ 242.5 million in the period, an expansion of 10.1% during the same period of the donation last year. Helbor did not launch in the quarter and 72% of its sales were from finished units.

Higher highs

Higher casualties

In other news, the textile industry Döhler de Joinville (SC) reported that it intends to increase its share capital by R $ 45 million, with the issuance of 15.1 million new shares, both common and preferred. The Santa Catarina company also intends to start trading its shares in B3 starting May 5.

The agenda highlights Vale’s production report, after the closing, and an interview by Petrobras on the resilience actions taken in the face of the impacts of the pandemic and the impact of oil prices.

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