Ibovespa closes higher this Tuesday, with the best score in almost 2 months | Economy

The Ibovespa, the main index of the São Paulo stock exchange, the B3, rose this Tuesday (2), the eve of the Central Bank’s decision on the new Brazilian basic interest rate and geopolitical tensions of the visit of the President of the Chamber of States United to Taiwan.

The index rose 1.11% to 103,362 points. It’s the best score in almost 2 months, since June 10 (105,481 points). See more quotes.

On Monday, the stock market closed down 0.91%, at 102,225 points. With today’s result, the indicator is up 0.19% in the month. In the year, it maintains a fall of 1.39%.

China sees Nancy Pelosi's visit to Taiwan as "extremely dangerous"

China sees Nancy Pelosi visit to Taiwan as ‘extremely dangerous’

What is messing with the markets?

Overseas, markets were nervous about the visit of US House Speaker Nancy Pelosi to Taiwan.

Before landing, Pelosi indicated that she would not be intimidated by Chinese threats that its military would never “stand idly by” if she visits the self-governing island claimed by Beijing.

She arrived in Taiwan around 22:30 local time (11:30 GMT). On Wednesday morning (3), she will meet with the island’s government and visit the local Parliament.

For the Chinese, the visit is a provocation. The government said its warplanes had flown over the line dividing the Taiwan Strait and said they had monitored the path of Pelosi’s flight from Malaysia.

China’s Ministry of Foreign Affairs said the American’s view is “a severe violation of the One China principle, severely infringes on China’s sovereignty and territorial integrity, severely undermines peace and stability in the Taiwan Strait, and issues a severely wrong signal to secessionist forces of ‘Taiwan independence'”.

'Who is interested in this visit?', asks Marcelo Lins about Nancy Pelosi's trip to Taiwan

‘Who is interested in this visit?’, asks Marcelo Lins about Nancy Pelosi’s trip to Taiwan

The Chinese Defense Ministry said it had put its armed forces on alert and would launch “targeted military operations”.

“For now, in the short term, it is difficult to know what China’s reaction will be to this visit (…), but it is certainly another geopolitical risk factor that adds to others that have been weighing on the markets in recent times. , such as high inflation, rising interest rates and fears of a US recession,” says Jennie Li, equity strategist at XP, in a report.

In the local scenario, the Brazilian Institute of Geography and Statistics (IBGE) earlier released the Monthly Industrial Survey, which showed that the sector retreated again in June, with a drop of 0.4% in relation to the previous month.

The Monetary Policy Committee (Copom) meets this Tuesday and Wednesday to define the basic interest rate, which today is 13.25% per year. The financial market predicts a rise of 0.5 percentage point, but is divided on the end of the Selic high cycle at this meeting.

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