^BVSP - IBOVESPA

Sao Paolo - Sao Paolo Delayed Price. Currency in BRL
94,637.06
+808.45 (+0.86%)
At close: 5:19PM BRT
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Previous Close93,828.61
Open93,839.16
Volume0
Day's Range93,838.60 - 97,198.33
52 Week Range74,275.00 - 106,650.00
Avg. Volume4,371,395
  • Investors keep eye on Brazil’s economy minister as coronavirus outbreak worsens
    MarketWatch

    Investors keep eye on Brazil’s economy minister as coronavirus outbreak worsens

    The focus for investors in Brazil is now on the staying power of the nation’s respected economy minister after two health ministers resigned in a little over a month while its president could face an impeachment battle as the country struggles to contain the spread of COVID-19.

  • Goldman Says Buy World’s Worst Stock Market Because Rebound Is Coming
    Bloomberg

    Goldman Says Buy World’s Worst Stock Market Because Rebound Is Coming

    (Bloomberg) -- Goldman Sachs is bullish on the world’s hardest-hit stock market.Down more than 48% this year when measured in dollars, Brazilian stocks will benefit from growing appetite for risky assets and a recovery in commodities prices during the second half of 2020, strategists led by Kamakshya Trivedi wrote in a report dated May 20.“Brazilian equities are an ideal bounceback candidate,” the strategists said. They recommended investors go long the benchmark Ibovespa index with a target of 90,000 points, or about 9% above current levels.Investors have fled from Brazilian stocks and its currency this year as the Covid-19 pandemic battered the economy and worsened the nation’s already-fragile fiscal outlook. Assets have been further undermined by political turbulence and a lack of confidence in President Jair Bolsonaro as he downplays the coronavirus threat even as Brazil becomes the world’s hotspot for new infections.To be sure, a rally to 90,000 would still leave the Ibovespa about 22% below where it was at the end of last year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Quant Fund Bucks an Industry Reckoning, Topping Brazilian Peers
    Bloomberg

    Quant Fund Bucks an Industry Reckoning, Topping Brazilian Peers

    (Bloomberg) -- Giant Zarathustra Master is getting good at dodging bullets.With an 11% year-to-date return, the quantitative hedge fund isn’t only bucking a brutal market downturn in Brazil, but it has also largely avoided a quant industry reckoning that’s rocked its peers.“The fund was designed to do well whenever the market gets euphoric or in panic mode,” said Flavio Terni, a founding partner at Sao Paulo-based Giant Steps Capital, which has 2.5 billion reais ($434 million) in assets under management, including the Zarathustra fund. “When things are fine, it just moves sideways.”There’s been plenty of turmoil in Brazil recently to fuel the fund’s gains -- from the coronavirus pandemic showing no signs of slowing to political scandals and departing ministers. The nation’s benchmark Ibovespa index is down 31% in local-currency terms this year.Zarathustra, which uses rules-based strategies to determine what and when to trade, is Brazil’s fourth-best performer among 177 domestic hedge funds in 2020, and its 32% gain over the past 12 months has topped all but two other funds. Since the onset of the crisis, more than half of its advance is linked to bets against the real, Terni said. The local currency has tumbled 30% this year, leading global losses, as record-low interest rates trim the carry-trade appeal.Though shorting the real is a big play in Brazil’s local fund industry, Terni said the fund’s quantitative approach gave it an edge over peers. The fund, which places almost 10,000 orders a day, uses strategies that take advantage of arbitrage opportunities and hard-to-spot correlations. It has about 50% of its risk allocated outside Brazil.“In irrational times, it’s pretty difficult to do the math and focus on fundamentals,” Terni said. “At those moments, you want to be fast.”Giant Steps, named after the seminal John Coltrane album, was one the first Brazilian hedge fund managers to embrace quant trading that was pioneered worldwide by Renaissance Technologies. There’s no official figure showing how prevalent the strategies are in Brazil, but they account for a small fraction of the industry’s 5.1 trillion reais in assets.‘Thus Spoke Zarathustra’Created in 2012, the Zarathustra fund was named after Friedrich Nietzsche’s prophet, who descends from his mountain home to preach a new philosophy. Giant Steps is planning to expand this year, while most of the domestic hedge fund industry grapples with its worst losses in decades.The firm plans to hire 10 people by year-end, boosting headcount to 35, and also aims to start a new equity fund in coming months designed by a team that includes Henrique Fiuza, a data scientist it hired from financial technology firm Nu Pagamentos SA. Giant Steps’ 2.5 billion-real AUM is up from about 1 billion reais last year, and the firm aims to double assets by the end of 2020.Terni doesn’t expect market turbulence to recede anytime soon.“The Fed has been printing money, the market is rallying without knowing when the outbreak will end, the political scenario is turbulent -- it’s a muddle,” he said. “I wouldn’t want to be a discretionary fund manager right now.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • EMERGING MARKETS-Latam FX firm as dollar drops; U.S. tariffs pressure stocks
    Reuters

    EMERGING MARKETS-Latam FX firm as dollar drops; U.S. tariffs pressure stocks

    * Trump to restore tariffs on metal imports from Brazil, Argentina * Latam FX gain as dollar drops after weak U.S. manufacturing data * Brazil stocks rise after strong manufacturing data * Chilean peso firms as central bank intervention kicks in By Susan Mathew Dec 2 (Reuters) - A dollar weakened by poor U.S. economic data helped Latin American currencies brush off the re-imposition of U.S. tariffs on steel and aluminum imports from Brazil and Argentina on Monday. Brazil's real firmed 0.4% with a spot auction by the central bank supporting the currency, while the Argentine and Mexican pesos were flat against a dollar that slid on weak U.S. manufacturing data. Surprising officials in the two South American countries, U.S. President Donald Trump said on Monday he would restore tariffs on U.S. steel and aluminum imports, accusing them of devaluing their currencies to the detriment of U.S. farmers.

  • Reuters

    UPDATE 2-Shares in Brazilian banks down after cap on overdraft interest rates

    Shares in Brazil's biggest lenders were down nearly 1% in early Thursday trading after the country's monetary policy committee imposed a cap on interest rates on overdraft credit, in a move likely to reduce their profits. Banks will not be allowed to charge interest rates over 150% annually, or 8% monthly, the committee said, starting on Jan. 6. Currently the average annual interest rate is roughly 306%.

  • EMERGING MARKETS-Chile peso at new low on slow mining data, unrest; other Latam FX drop too
    Reuters

    EMERGING MARKETS-Chile peso at new low on slow mining data, unrest; other Latam FX drop too

    Chile's peso slid 1.5% to 737.53 to the dollar, an all-time low and stocks tumbled 3.1% to a eight-week trough. The country's manufacturing production dropped in September from a year ago amid a decrease in mining production, government data showed. Analysts worry about deteriorating economic activity in Chile - the world's biggest producer of copper as a recent political crisis has seen union workers at BHP's Escondida copper miner go on strike.

  • EMERGING MARKETS-Trade optimism lifts Latam currencies, Argentine election awaited
    Reuters

    EMERGING MARKETS-Trade optimism lifts Latam currencies, Argentine election awaited

    Adding to overall optimism, the U.S. Trade Representative's office said U.S. and Chinese trade officials were "close to finalizing" some parts of an agreement.

  • Reuters

    EMERGING MARKETS-Latam FX hits pause as dollar gains favor

    The currency had hit a two-month high of 3.99 per dollar earlier in the session. The Mexican peso pulled back 0.2%, but held near a three-month high hit earlier this week, while the Colombian peso and the Argentine peso slipped.

  • Reuters

    EMERGING MARKETS-Latam FX index up to 11-week peak as currencies hit multi-month highs

    Most other currencies in the region also gained, with Colombia's peso hitting a five-week high, while Chile's currency jumped as much as 0.9%. A third day of gains for Brazil's real came after the Senate gave its final seal of approval for a landmark pension reform on Wednesday. The central bank on Thursday said Brazil's current account deficit as a share of gross domestic product widened to 2.05% in the 12 months to September.

  • Reuters

    UPDATE 2-Brazil pension reform awaits ratification after clearing Senate

    Brazil's Senate on Wednesday gave its final seal of approval to a sweeping overhaul of the country's pension system, bringing to a close months of political wrangling over the government's keystone policy to stabilize public finances and boost growth. Senate President Davi Alcolumbre said that should be done by Nov. 19, once President Jair Bolsonaro returns from a series of official visits to Asia. Brazil's benchmark Bovespa stock index rose to a fresh record high just shy of 108,000 points, and the real firmed to around 4.03 per dollar, the strongest in six weeks.

  • Reuters

    UPDATE 3-Brazil pension reform clears Congress, stocks hit new highs

    Brazil's Senate on Tuesday approved a sweeping overhaul of the country's pension system to stabilize public finances and restore business confidence, setting up President Jair Bolsonaro to sign his keystone economic proposal into law. The Senate approved the main text of the landmark pension reform by a margin of 60-19 in a late Tuesday session before moving on to consider amendments. Economists have said the controversial cuts to social security spending are crucial to closing a fiscal deficit that cost Brazil its investment-grade credit rating.

  • Reuters

    EMERGING MARKETS-LATAM Airlines soars, Mexican peso logs more than 1% weekly loss

    LATAM's surge saw Chile stocks jump up to 2.5% during the session and hit their highest in almost five months, outperforming regional peers. Delta bought 20% of LATAM for $1.9 billion in a major new airline partnership, but also sold its stake in Brazil's largest airline Gol, which sent shares 6.5% lower followed closely by Gol's loyalty program, Smiles Fidelidade, which slid 5.3%.

  • Reuters

    EMERGING MARKETS-Latam FX down, Mexican peso extends slide after rate cut

    Mexico's main stock index dipped 0.2%. The country's central bank cut the benchmark interest rate by 25 basis points for a second time this year, to 7.75%. "It's bit on the dovish side, which means there are more cuts ahead, which is reasonable," said Win Thin, global head of emerging market currency strategy at Brown Brothers Harriman.

  • EMERGING MARKETS-Latam assets rise, lifted by China stimulus, U.S. rate cut bets
    Reuters

    EMERGING MARKETS-Latam assets rise, lifted by China stimulus, U.S. rate cut bets

    With the dollar on the backfoot, the Mexican peso jumped 1% to touch a three-week high on Friday, while currencies of Brazil, Colombia, Chile and Argentina rose between 0.43% and 0.86%.

  • Reuters

    EMERGING MARKETS-Latam stocks hit 3-week highs on U.S-China trade optimism

    MSCI's index of Latin American stocks rose 1.6%, tracking gains in global stock markets after the world's two largest economies agreed to hold high-level talks in early October. Brazil's Bovespa index jumped 1.2%, boosted by gains in banking shares as central bank President Roberto Campos Neto said the economy should recover in the second half of year, most likely in the fourth quarter. Campos Neto also said inflation in Brazil is well-anchored over the short-, medium- and long-term horizons, giving policymakers room to reduce interest rates further.

  • Stocks to rise as rate cuts beat back trade worries for now: Reuters poll
    Reuters

    Stocks to rise as rate cuts beat back trade worries for now: Reuters poll

    World stocks will keep rising over the coming year, according to the latest Reuters polls of strategists, but wild gyrations are likely in the lift from expected central bank policy easing and drag from developments in the U.S.-China trade war. Fears of a global economic slowdown as the world's largest economies become more deeply locked in a tit-for-tat trade tariff war unnerved world stocks last year, with all the indexes polled by Reuters, barring India and Brazil, in the red in 2018. While stocks have recovered globally so far this year, the latest polls of nearly 300 equity strategists showed nine of the 17 indexes polled on would not recoup last year's heavy losses by end-2019.

  • Reuters

    UPDATE 1-Brazilian stocks see largest foreign net outflow in 23 years

    Foreign investors have pulled 20.3 billion reais ($5 billion) from Brazilian stocks so far this year, B3 SA Bolsa Balcao said in a statement on Tuesday, the largest withdrawal since 1996. Driven by increasing worries over the global economy, the U.S.-China trade war and a financial crisis in neighboring Argentina, the outflow surpassed the 16.5 billion reais that was pulled from Brazilian stocks in the same period in 2008, during the global financial crisis. Brokerage Coinvalores said in a note to clients that market participants have been closely monitoring actions taken by central banks around the world to contain the risks of a global economic slowdown.

  • Reuters

    Brazilian stocks see largest foreign net outflow in 23 years

    Foreign investors have pulled 20.3 billion reais ($5 billion) from Brazilian stocks so far this year, B3 SA Bolsa Balcao said in a statement on Tuesday, the largest withdrawal since 1996. Driven by increasing worries over the global economy, the U.S.-China trade war and a financial crisis in neighboring Argentina, the outflow surpassed the 16.5 billion reais that was pulled from Brazilian stocks in the same period in 2008, during the global financial crisis.

  • EMERGING MARKETS-Argentina's peso extends slide, stocks rebound on China relief
    Reuters

    EMERGING MARKETS-Argentina's peso extends slide, stocks rebound on China relief

    The currency had fallen 30% to record low of 61.995 per dollar in the previous session, sending shockwaves across global financial markets. Opposition candidate Alberto Fernandez, who has former President Cristina Fernandez as his running mate, pulled off a stunning upset in the primary with a wider-than-expected 15-point lead over incumbent president Macri. Data provider IHS Markit showed five-year credit default swaps (CDS) marked at 2,116 basis points, up from what was already a five-year high the previous day.

  • Reuters

    UPDATE 1-Brazil economic activity index falls in Q2, pointing to recession

    Economic activity in Brazil fell slightly in the three months to June, a central bank indicator showed on Monday, suggesting Latin America's largest economy may have slipped into recession. The central bank's IBC-Br economic activity index, a leading indicator of gross domestic product (GDP), fell 0.13% in the second quarter, after a 0.68% drop in the three months to March. A recession is typically defined as two consecutive quarters of negative economic growth.

  • Reuters

    Brazil currency, interest rate futures drop on Copom rate-cut decision

    Brazil's currency and interest rate futures opened lower on Thursday, a day after the central bank kicked off an easing cycle with a sharper rate cut than most economists expected, while stocks rallied on the outlook for more stimulus ahead. The U.S. Federal Reserve also lowered its policy rate after some Brazilian financial markets closed on Wednesday, but played down the chances of a string of additional rate cuts, which boosted the U.S. dollar. Brazilian interest rate futures fell across the board on Thursday morning and the local currency, the real , weakened about 0.4%.

  • Reuters

    Brazil lower house pension reform vote hits delay as savings cut

    Brazil's lower house of Congress may not vote on a landmark pension reform bill until August, leaders said on Friday, as intense negotiation over amendments delayed the process and reduced savings derived from the overhaul. The government's Pension and Labor Secretary Rogerio Marinho said that after amendments the bill is expected to save close to 900 billion reais ($240 billion) over 10 years if approved, down from the more than 1 trillion reais in savings the government initially sought. The revision to the costly pension system is President Jair Bolsonaro's flagship policy for cutting government spending and restoring health to public finances.

  • Reuters

    UPDATE 2-Brazil lower house pension reform vote hits delay as savings cut

    Brazil's lower house of Congress may not vote on a landmark pension reform bill until August, leaders said on Friday, as intense negotiation over amendments delayed the process and reduced savings derived from the overhaul. The government's Pension and Labor Secretary Rogerio Marinho said that after amendments the bill is expected to save close to 900 billion reais ($240 billion) over 10 years if approved, down from the more than 1 trillion reais in savings the government initially sought. The revision to the costly pension system is President Jair Bolsonaro's flagship policy for cutting government spending and restoring health to public finances.