São Paulo's stock market had a good performance on Jan.24

Lula’s trial had a strong impact on Brazil’s financial markets. Investors were already expecting the confirmation of the first conviction – their only doubt was whether or not the trial would finish in a 2-1 or 3-0 defeat for the former president. São Paulo’s stock market closed the day up by 3.72 percent. In the chart below, we’ve tracked the main events of the trial and their effects on the stock trade.

According to a study from Economática, a consulting company, companies listed on São Paulo’s stock market had a 100bn-BRL gain of value. Of that amount, 28.4bn BRL is represented by state-owned companies. No company has gained more market value than Petrobras, up from 246bn on Tuesday to 261bn BRL yesterday. Banco do Brasil also gained 15bn BRL.

Meanwhile, the Brazilian Real gained value against the U.S. Dollar. The American currency closed the day down by 2.44 percent, at 3.159 BRL.

Investors believe that if Lula is out of the presidential race, it will be more likely to have a pro-austerity candidate elected in October.


Read the full story NOW!

MoneyJan 25, 2018

Tags: - - -

BY The Brazilian Report

We are an in-depth content platform about Brazil, made by Brazilians and destined to foreign audiences.