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BRAZIL: Ibovespa Falls 0.78% Amid High Volatility In Foreign Markets

(Agencia CMA Latam) - Ibovespa, the benchmark stock index in Brazil, closed 0.78% lower at 80,898.69 points Friday, reacting to the strong volatility in the U.S. markets and a drop of more than 3% in oil prices. In the United States, the stock markets were trading lower amid speculation on how many times the Federal Reserve (Fed) will raise interest rates in the country during 2018.

"We are tracking the external movement of risk aversion, and today we have impacted Treasuries and falling commodities in the market here," said Vitor Suzaki, an analyst at Lerosa Investimentos.

According to Ari Santos, the chief operating officer of H.Commcor, "volatility is prevailing, and it is not due to corporate or internal news."

In the business field, Vale's shares rose 0.98%, while Itaú Unibanco's shares rose 0.25%, holding the index below the 1% drop. Suzaki recalled that the approval to the privatization of Eletrobras' power distributors prevented a further drop in the index.

With the carnival, the movement of the index for Wednesday is uncertain, said Santos, since the market will remain closed for two days in a scenario of high volatility and extreme vulnerability to the United States market.

Meanwhile, after trading volatile, but for most of the trading session in the positive field, the locally traded U.S. dollar ended the session with gains of 0.67%, quoted at R$ 3.3032. In the week, the currency appreciated 2.74%.

by Agencia CMA Latam

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