The Ibovespa, the main index of B3, closed up 1.23% at 167,563.47 points on 4 November, ending a six-session losing streak. The index traded between an intraday low of 165,541.38 and a high of 167,986.37 points, with financial volume of 32.9 billion reais.
The move followed the Democratic Party’s result in the US midterm elections. Oil futures fell sharply, with WTI at its lowest level since August, while the US dollar weakened against the real. Our own market data put WTI at $99.64 a barrel at the close of 3 November, before the sell-off.
Banks and miners lead the gains
Itaú Unibanco rose 3.20% after reporting a record recurring managerial profit of 12.6 billion reais for the July-September quarter. That was up 6.7% year on year and 2.5% quarter on quarter.
CSN Mineração was the strongest blue chip, climbing 11.93%. Brava Energia was the weakest, falling 8.85%.
Currency and rate uncertainty
Cristiane Quartaroli, chief economist at Ouribank, said the dollar’s fall partly reflected a correction after the real’s recent sharp depreciation. She said the exchange rate remained under strong pressure.
Uncertainty over fiscal policy and the composition of the economic team kept the market cautious, she said. Traders were also waiting for the Copom decision on the Selic rate, due after the close.
Politics and Iran in focus
Lula was expected to address fiscal responsibility in a national address on Sunday, 8 November. Trump said he did not intend to intensify military offensives against Iran, which helped ease oil prices.
Related: Ibovespa falls for fourth session as real hits R$5.387
Data: FRED — St. Louis Fed
