BRAZIL: Ibovespa Snaps Five-day Winning Streak – Markets Insider

(RTTNews) – Ibovespa, the benchmark stock index in Brazil, fell 0.34% Monday, closing at 65,212.31 points, interrupting an upward sequence of five trading sessions, amid an oil price decrease devaluation and a lack of political news because of the congressional recess.

Elite Corretora economist Hersz Ferman said that the 1% oil price drop hit Petrobras stocks, which closed lower (PETR3 -1.54%, PETR4 -1.14%).

He added that investors took profits after a 4.9% rise in Ibovespa last week, after Senate approval to the labor reform and former President Luiz Inacio Lula da Silva’s conviction.

The locally traded US dollar faced few swings and closed 0.12% lower, at R$ 3.1820, tracking international markets. Investors believe that the greenback could bounce back to R$ 3.20, but that there was a lack of catalysts Tuesday.

For the next few days, Ibovespa may continue to show slight variations amid reduced trading volume at least until the start of the corporate earnings season, at the end of this week, Ferman said.

“The most important issue in Brazil continues to be the adoption of economic reforms, but with the parliamentary recess, things tend to a halt. I believe we can move on to track the external scenario further,” he said.

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