Stock market closes at highest level in seven months after inflation eases

O sharp decline in inflation in May boosted the financial market. The stock exchange surpassed 115 thousand points and closed at the highest level in seven months. The dollar had a slight rise, driven by purchases on the eve of the holiday.

The B3 Ibovespa index closed this Wednesday (7) at 115,488 points, up 0.77%. The indicator is at its highest level since November 8 last year, when it ended just above 116,000 points.

Overseas, stock markets had a mixed day, with some falling after the release of weaker-than-expected exports from China. However, the disclosure that the Extended National Consumer Price Index (IPCA) fell to 0.23% in May and is below 4% in the accumulated 12 months encouraged investors.

After four consecutive days of decline, the commercial dollar rose slightly, ending the day sold at R$4.924, up R$0.012 (+0.24%). The quotation alternated highs and lows, but towards the end of the negotiations, exporters and financial institutions took advantage of the low price to buy currency. As there was low liquidity (few negotiations) on the eve of the holiday, the movements resulted in an increase in the price.

Domestic factors prevailed in the financial market this Wednesday. The sharp deceleration in prices puts pressure on the Central Bank (BC) to initiate cuts in the Selic rate (basic interest rates) earlier. The drop in interest rates favors riskier investments, such as the stock market, boosting the stock exchanges.

Now, the Brazil Agency it is giving the articles about the closure of the financial market only on extraordinary days. The dollar rate and the stock exchange level are no longer reported on a daily basis.