Ibovespa graduates and surpasses 78,000 points after the Fed President's talks; dollar reduces profits

SÃO PAULO – After starting the trading session lower, Ibovespa accelerated the gains and at 14:16 the time of Brasilia rose by 2.29% to 78,408 points, after having announced the testimony of Federal Reserve Chairman Jerome Powell in the US Senate.

Mr. Powell pointed out that the US labor market is strong and that the economy is growing at a good pace this year, while inflation remains on track and should stay around the corner. 2% goal for a while. Faced with this scenario, the Fed Chairman believes that the best strategy for the moment is to continue to gradually raise interest rates, which favors emerging markets and explains the stock market outlook.

Following Powell's speech, dollar futures maturing in August lose strength and rise slightly by 0.01% to R $ 3,866, while future interest rates expire in January 2019 and 2021 are virtually stable at 6.77% and 9.18%, respectively.

Market Highlights

On the positive side, Gol's shares continued the bullish movement of the day before, after jumping 11.6% after the end of the trading day. Goldman Sachs is raising the recommendation for the role of selling to neutral by providing for an increase in ticket prices next year. Meanwhile, Cielo shares retreat after Itaú announces the entry into the market for "small business" machines, further increasing competition in the sector.

The largest increases among the shares that make up the Ibovespa are: GED PN N2 GED PN N2 % % % ] +7.43

-7.95 111.77M MRFG3 MARFRIG SUR 8.37 ] +5.82 + 14,34 USIM5 USIMINAS PNA 8.81 76 GOAU4 METRIC GERDAU PN 7.61 +5.69 +32.11 84.04M SMLS3 MOUSE ON [19659017] [ThemostimportantPertesbymilitaryproductsincludingtheIboveare:

-21.03

Code	Active	Cot R $
26.47M

ESTC3 ESTACIO OF THE PARTON 26.62 -0.67 [19659014]

-18.14 ] COPYING PNB 20.78 -0.57 ] [19659017] CIEL3 17.69 -0.06 -22.95 74M

* – Batch of Thousand Shares 1 – In reai s K – A thousand | M – Million | B – Billion)

News of the day

In the newspapers, there is talk of the conflict between the lawyers of Lula, not only in the criminal field, but also in the electoral field. According to Folha's panel column, Eugênio Aragão, a former justice minister who was appointed to represent the PTT, defeated Luiz Fernando Pereira, the PT consultant, who maintains that although convicted in the second instance, the President could lead the elections.

In an interview with the same newspaper, the former chairman of PT, Rui Falcão, said the party's government program will not be antimarket and will even do business to the company and to the clbad average.

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