Amidst the coronavirus pandemic financial market rises, IBOVESPA rises 1.5%

Even in the face of a very serious scenario that the whole world is going through, the IBOVESPA (Brazilian stock exchange) had an increase this last Monday, April 13th.

According to information from Valor Economico, the Ibovespa closed higher this fair on the news regarding the agreement by the Organization of Petroleum Exporting Countries and allies (OPEC+) to compress the production of the commodity in the world.

After all, what happened to the market? The speech by the Saudi Arabian Minister of Energy about the effective cuts in the supply of oil after the pact terminated by OPEC+, which add up to around 19.5 million barrels per day, made this rise in the stock market possible.

This determination respects the group's agreement, the commitment of other G20 countries and oil purchases for strategic reserves.

The biggest fuel producers agreed to cut daily production by 9.7 million barrels a day, especially for the United States, Canada, Mexico and Brazil, accepting smaller cuts.

Amidst the coronavirus pandemic financial market rises, IBOVESPA rises 1.5%

During the morning, Donald Trump, said on Twitter (his official communication channel) that the number that countries are looking for, in fact, is 20 million barrels per day of cut in production. Brent barrel was up from 2.06% to US$ 32.13.

Even with restrictive measures, the coronavirus has already reached 550,000 infections in the United States, with 22,000 deaths.

For this reason, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, also with Mandetta in Brazil, has taken a leading role during the health crisis, said that “reopening” of parts of the country could start progressively in May.

Governor Andrew Cuomo (of New York) said the state is “controlling the spread” and that it appears “the worst is over […] if the containment measures remain,” he told local media.

Already for those in Europe, where the centralization of the virus has also caused great damage. The slowdown of the pandemic continues, in Italy, for example, 431 new deaths were recorded on Sunday, the lowest number since March 19.

IBOVESPA growth

The stock exchange in Brazil rose 1.49%, to 78,835 points with a financial volume traded of R$ 17.67 billion.

But at the end of the day, the upcoming dollar for May has gains of 1.37% to R$ 5.20. The commercial dollar, in turn, rose to 1.86%, to R$ 5.1825 for buying and R$ 5.1855 for selling.

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