Ibovespa jumps to 210,000
- Brazil’s Ibovespa did not reach 210,000 this week; it peaked at 199,354.81 intraday on April 14 and closed April 27 at 189,578.80. - The benchmark’s April surge tracked a stronger real, which fell below R$5 per dollar, and foreign buying that lifted the index nearly 6%. - EM inflows shifted back to Latin America after ceasefire headlines and commodity gains. (bloomberg.com)
Brazil’s stock benchmark has surged in April, but it has not hit 210,000. The Ibovespa’s recent high was 199,354.81 intraday on April 14. (finance.yahoo.com) (valorinternational.globo.com) The index closed at 198,657 on April 14 after reversing earlier losses, then slipped back to 189,578.80 by April 27. Yahoo Finance’s daily history shows the run-up and the pullback day by day. (finance.yahoo.com) The April rally coincided with a stronger Brazilian real. Valor reported the exchange rate fell to R$4.99 per dollar on April 14, the first close below R$5 in more than two years. (valorinternational.globo.com) That currency move matters because the Ibovespa is priced in reais, so a stronger real boosts dollar returns for foreign investors. Valor said the index was up nearly 6% in April as overseas money kept coming into B3, Brazil’s exchange. (valorinternational.globo.com) The flows story was broader than Brazil. Bloomberg reported that investors put more than $1.1 billion into U.S.-listed emerging-market exchange-traded funds in the week ended April 10, led by Latin American equities. (bloomberg.com) The backdrop was a sharp swing in risk appetite after U.S.-Iran ceasefire headlines. Bloomberg said the inflow ended a four-week streak of more than $5.6 billion in outflows from those funds. (bloomberg.com) Brazil also offered the mix global investors often want in an emerging-market rally: commodity exposure, high local rates and a strengthening currency. The Central Bank of Brazil’s benchmark Selic rate was 14.25%, and the bank’s Focus survey tracks market expectations for inflation, growth and rates each week. (bcb.gov.br 1) (bcb.gov.br 2) The Institute of International Finance said nonresident portfolio flows to emerging markets deteriorated abruptly in March after the Iran war began. By mid-April, Brazil was benefiting from the rebound in risk appetite that followed. (iif.com) (bloomberg.com) The clean version of the story is narrower than the headline on this card. Brazil’s market did jump to a record in mid-April, but the verified peak was just under 200,000, not 210,000. (finance.yahoo.com) (valorinternational.globo.com)
