(photo: Marcello Casal Jr / Ag
(photo: Marcello Casal Jr / Agencia Brasil.)

Still reacting to the global economic stimulus in an attempt to contain the economic impacts of the coronavirus, the Ibovespa, the main index of the So Paulo Stock Exchange (B3) registered an increase for the third consecutive price and is moving towards closing the first week in positive since February. The index ended with gains of 3.67% to 77,709 points, with a financial volume of R $ 30.1 billion. The commercial dollar closed below R $ 5.00 for the first since March 13, the American currency fell by 0.75%, to R $ 4.99. Abroad, the Dow Jones jumped 6.38%, reaching its highest cumulative three-day high since 1931.

The stock markets accelerated gains with expectations that the House of Representatives in the United States will impose less obstacles to voting on the $ 2 trillion package approved in the Senate to fight the coronavirus. After the explosion in the number of unemployed released today, with unemployment insurance claims in the country skyrocketing from 282,000 in the week ended on the 13th to 3.28 million last week, investors expect the measure to move faster. In the Senate, the package has already been approved unanimously.

The Brazilian stock index registered a more expressive increase, but decreased gains amid political instability in the domestic scenario. Here, President Jair Bolsonaro went against the measures adopted by most states to combat the coronavirus and even proposed a “vertical isolation”, only for the elderly and the sick. Bolsonaro was rejected by former allies who disagree with his position, in addition to health technicians and the president of the World Health Organization (WHO).

According to the economist at G2W Investimentos, Vitor Hugo Fonseca the focus is on the incentives of monetary policy, but the Brazilian political crisis is in the background. “In recent days, the eyes are focused on the government's efforts to implement measures to contain the economic impact of the coronavirus. This eventual split between the president and the governors, chamber and senate is still not the main point of concern. What the market really expects and the most important are the actions that the government will take here, since we have not had any direct injection of capital until now ”, he evaluated.

Among the national indicators, the Central Bank's Economic Activity Index (IBC-Br) was released, which grew by 0.24% in January compared to the previous month. The number came below the median expectation of economists, who pointed to an increase of 0.4%. The indicator has not yet priced the impacts caused by the coronavirus, which surfaced in February, which, according to analysts, already leads to the understanding that the next numbers will be even weaker. In December, the IBC-Br recorded a 0.27% contraction. On the annual basis, the IBC-Br had an expansion of 0.69%, while the market expected an increase of 1.05%.

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