BRAZIL: Ibovespa Closes Week Down Due To External Scenario And Adjustments

(RTTNews) - After hitting a record closing level on Tuesday, reaching 76,762.91 points in a 3.23% rise, the Ibovespa fell 0.73% on Friday to 76,054.71 points. The external scenario was the prevailing factor behind the downturn in the benchmark stock index in Brazil.

September data on employment and income were released in the United States. The American economy closed 33,000 jobs last month, according to the U.S. Labor Department data, while the market expected it to create 90,000 jobs.

"As the dollar strengthened against the major currencies and especially emerging markets, the stock markets in these countries were also in the same direction, falling," said Vitor Suzaki, an analyst at Lerosa Investimentos.

Solange Srour, the leading economist at Arx Investimentos, said that the downgrade occurred primarily due "to the position adjustment movement after posting strong gains in two sessions, and that is normal among investors."

Also, oil prices abroad pushed down Petrobras' shares [PETRO4 -1.38%], that recorded the biggest devaluation in today's trading session.

In the opposite end, the paper and pulp companies Fibria [FIBR3 +4.40%], Suzano [SUZB5 +3.08%], and Klabin [KLBN11 + 2.05%] were positive highlights in the trading session. Usiminas [USIM5 +4.35%] also performed well.

Meanwhile, although the locally traded U.S. dollar has reduced gains throughout the day, the greenback rose by 0.22% on Friday, settling at R$ 3.16. The movement reflected the increase in the expectation of a further elevation of the interest rate in the U.S. Still this year. In the week, however, the U.S. dollar accumulated a 0.25% fall against the Brazilian real.

Without many options, analysts prefer not to point to Ibovespa targeting on Monday's trading session. According to Suzaki, the external market needs to be monitored, since the internal political scenario is still tepid. Srour adds that the medium-term trend for Ibovespa is going higher, but that the external and political scenes may weigh on the Brazilian stock market.