The Brazilian Stock Exchange records a record and close over 94,000 points – 14/01/2019 – Market



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The prospect of a more severe social security reform had the effect Monday to favor the Brazilian Stock Exchange, which broke a new record, exceeding 94,000 points. Investors were encouraged by the news published by the newspaper Valor Econômico that the new rules on pensions could lead the government to save 1,000 billion rubles. The text that will be proposed by the government of Jair Bolsonaro (PSL) is not yet known, but the estimated amount would be higher than expected if the project presented by the management of Michel Temer (MDB) had left the document.

The country's leading Ibovespa index, rose 0.87%, to 94,474 points. The financial volume was around 13 billion rubles.

"If we base ourselves on other variables, such as interest rates and the dollar, which have fallen sharply, this confirms the optimism of those who think that the stock market is not so expensive, "says Ricardo Peretti

" The trend is for them [membros do governo Bolsonaro] to follow the line of a harder reform and with the capitalization, "said Lucas Lima ,

Pension reform, which is fundamental to the rebalancing of public accounts, holds particular attention from local investors, leading to the highest in the stock market.

"Who wants to see the thesis more

For him, the optimistic trend can be renewed or reversed from the month of February, when the terms of the reform are known, as well as the provision of the new Congress , which will take office on January 1, February

"The last time the market bought in advance [a reforma da Previdência] went to Joesley Day. It is perhaps one of the facts that excludes the foreign investor from the market, "said Peretti.

He refers to the scandal involving former President Temer and blocked the reform agenda debated in Congress

Foreign investors continue to withdraw funds from the Brazilian stock market, in the wake of a less risky external market. The global economy continues to be a source of concern, with China posting worse-than-expected trade data that has affected stock markets around the world.

The leading Asian and European indexes fell on Monday. ended the day at a still low level.

The dollar lost on Monday, returning to R $ 3.7010, after spending most of the trading session on the rise. to the appreciation of the US dollar: a dollar composed of 24 emerging currencies, the dollar was appreciating compared to 16.

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