Ibovespa opens higher after data from China cheers markets

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The day before, the main index of the Brazilian stock exchange advanced 1.03%, to 119,392 points. Ibovespa is operating downwards, driven by abroad. Freepik Ibovespa, the main index on the São Paulo stock exchange, B3, opened higher this Friday, following the good international mood following the release of more positive data from China. At 10:20 am, the index rose 0.09%, to 119,501 points. See more quotes. The previous day, the Ibovespa closed up 1.03%, at 119,392 points, the highest level in more than a month. As a result, the index began to accumulate increases of: 3.54% in the week; 3.15% in the month; and 8.80% in the year. What’s moving the markets? What’s moving the markets? After weeks of negative sentiment with China dominating business, the country surprised positively again this Friday. According to data released this morning, Chinese industrial production increased by 4.5% on an annual basis in August, while the market projected growth of 4.1%. The number represents an acceleration of the industry in relation to what was observed in July, when production had grown 3.7%, also in a year-on-year comparison. Commerce also advanced more than expected: retail sales last month showed an annual increase of 4.6%, against a less significant increase expected by the market, of 3.5%. In July, the increase had been 2.5%. In addition to the data, the news that the Chinese government provided new stimulus for the economy also encouraged investors. The People’s Bank of China cut its short-term interest rate and injected around R$4.7 billion into the economy. China is the second largest economy in the world and, with better prospects for its activity, other countries also benefit, as it is one of the main demanders for various export products. In the case of Brazil, China is the main trading partner. In the United States, however, the day is one of greater tension due to the start of a simultaneous strike at three of the country’s largest automakers. Deutsche Bank’s expectations are that, if the strike escalates to a general strike, automakers will have an impact of US$500 million on their profits per week. The number of retail sales also affects domestic businesses. According to the Brazilian Institute of Geography and Statistics (IBGE), Brazilian trade grew 0.7% in July, accumulating an increase of 1.6% in 12 months. Broad retail sales, which include vehicles, motorcycles, parts and pieces and construction materials, fell 0.3% in the same month, against expectations of a 0.3% drop. In 12 months, however, sales volume accumulated an increase of 2.3%.

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