A palpable relief that US banks are blowing assets here

Domestic investors followed US markets, which gave a respite in the risk aversion caused by the recent collapse of First Republic Bank. Friday saw a recovery in the sector on Wall Street and had a good effect here as well.

The “Ibovespa” index, the main Brazilian stock index, ended the day up by 2.91%, at 105.1 thousand points. In addition to relief with financial institutions in the US (although the news did not highlight anything that changes the scenario significantly), increases in iron ore and oil helped gains for Vale and Petrobras. Shares of Braskem were also highlighted at the session and rose more than 40%, following news that a foreign state-owned company would be interested in buying part of the Brazilian company. The information was dismissed at the end of the day, even as the company’s shares closed down more than 20%.

Future interest rates also continued to fall while investors continued to digest the Copom (Monetary Policy Committee) statement, which is seen as less deflationary than previously. As a result, prices have fallen in almost all maturity periods.

Finally, the dollar lost ground against major world currencies and was on track to close Friday down 0.67% at R$5.94.