Ibovespa exceeds 91,000 points after the agreement between the United States and China; The dollar drops to $ 3.83

SÃO PAULO – A wave of generalized optimism seizes world markets after a truce in the US-China trade war and the Brazilian exchange renewing its records. The agreement between the countries, concluded last weekend at the G-20, has repercussions on the stock markets around the world and on the commodities market, strengthening the Ibovespa index at the beginning of the December.

At 10:05 am, Ibovespa rose 1.319% to 90,663 points, after reaching the record high of the day, which was 91,242 points. The upcoming dollar contract expiring in January 2019 decreased by 0.52% to $ 3,843 and the commercial dollar lost 0.72% to $ 3,836.

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It is worth remembering that the index reached new historical highs last week and flirted with 90,000 points at the close.

Asian stock markets abroad fell sharply on Monday after US presidents Donald Trump and Xi Jinping of China concluded a truce in the trade war between the countries. The temporary pause between China and the United States also has a positive influence on business in Europe, where trade supports gains of more than 2%.

The performance is also positive in the commodities market, with an increase of nearly 2% in iron ore and over 4% in oil, after the input recorded the worst week of the end of November in the last ten years.

The soaring oil after the worst week of the decade is also influenced by the decisions of the leaders of Russia and Saudi Arabia, also meeting in the G-20, to expand the pact price control in the market – although the two countries have not yet confirmed new agreements. Regarding the oil market, Qatar has decided to withdraw from OPEC (Organization of Petroleum Exporting Countries) as of January 1, so that it can focus on its plans to increase oil production.

China and the United States

Country Presidents Donald Trump and Xi Jinping agreed not to apply additional tariffs on their exports, leaving a truce in the trade war that has been going on weeks and

Thanks to the agreement reached at the G-20, which took place this weekend in Argentina, the United States suspended the increase in customs duties to 25% of 200 billion US dollars worth of Chinese goods that would come into effect on 1 January. On the other hand, China is committed to increasing its purchases in the North American market of agricultural, energy and industrial products.

The break will last 90 days, during which China and the United States will try to resolve their trade disputes in new negotiations. The White House has also indicated that countries will be negotiating in the coming weeks negotiations including trade, technology transfer, intellectual property, non-tariff barriers, computer theft and agriculture.

If they do not reach a trade agreement within 90 days, the countries agree to raise the US tax rate on Chinese products from 10% to 25%.

For Credit Suisse badysts, the delay seems "rather tight", especially if we consider the Christmas and New Year holidays in the West and the Chinese New Year. For them, the short deadline set by the US government is intended to put pressure on the Chinese government for it to show signs of goodwill and swift action. In any case, they think that "anxiety" could come back after the beginning of the year.

If the Chinese government is really ready to end the trade war, it will probably announce domestic reforms and send billboards to the market during the meeting. Chinese Central Economic Work Conference in mid-December.

Highlights of the Stock Exchange

The highest increases among the shares composing the Ibovespa are as follows:

of the shares that make up the Ibovespa are: [1965 % % % % % % % [19659050]% % ] -0.08 -15.21 1.95M ABEV3 AMBEV S / A ON [196590] 23] 16.91 – Lot of thousand shares
¹ – In reais ( K – A thousand | M – Millions | B – Billion)

Political Topic

The criterion of ministerial choice and the pattern of political articulation adopted by President-elect Jair Bolsonaro (PSL) must bring the next government with an unstable coalition in Congress, according to the newspaper Folha de S. Paulo. Half of the country's major parties say they intend to work with the president-elect, but only 3 of the 15 largest abbreviations in the House of Representatives say they are willing to formally integrate the governing base.

Relations between these parties and the new government indicate that Bolsonaro will have a lean core of political support. To approve projects that interest him, the president-elect will also rely on sympathetic acronyms on his agenda, but remaining in distant orbit.

Folha's team of rapporteurs consulted the presidents, leaders and leaders of the 15 largest parties in the House. In addition to the Bolsonaro PSL, only DEM and PTB are considering formal membership of the allied base of the next government.

Paulo Guedes canceled a trip he would make to Europe this week for health reasons, according to Folha de S.Paulo. The future Minister of Economy Jair Bolsonaro is afflicted and has a high fever and should stay home to treat an infection.

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