BRAZIL: DI Rates Close Lower Amid Chinese Stimulus Euphoria

(RTTNews) - The one-day interbank deposit futures rates (DI rates) in Brazil ended lower Tuesday, tracking the locally traded U.S. dollar amid investors' euphoria with the stimulus actions promoted by the Chinese central bank (PBoC), boosting emerging countries assets, as well as commodities prices.

According to Rafael Passos, an economist at Guide Investimentos' economist, the session was quite positive for global risk assets with the Chinese government measures to boost the economy.

In the domestic scene, presidential pre-candidate Geraldo Alckmin (PSDB) interview last night in the Roda Viva TV show also had positive repercussions after he had defended structural reforms in Brazil.

Despite tracking the locally traded U.S. dollar, which fell by 1% against the Brazilian real, DI rates fall was "more contained," said Matheus Gallina, an analyst at Quantitas. "The market is quiet. The trading volume is thin," he noted.

The January 2019 DI contract rate closed at 6.69%, from 6.72% in the previous settlement, while the January 2020 DI rate was at 8.05%, from 8.14%. The January 2021 DI contract rate settled at 9.05, from 9.11%.