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BRAZIL: Petrobras Shares Rise, Limit Ibovespa Losses

(Agencia CMA Latam) - Ibovespa, the benchmark stock market index in Brazil, fell 0.12% to 85,130.42 points Tuesday. Stocks fell amid a wave of risk aversion caused by higher US Treasury yields, but Petrobras shares tracked oil prices and ended higher (PETR3 +3.51%)

"The Ibovespa could have fallen much more. The U.S. [stock] market is very heavy and Treasury [rates] are rising, but Petrobras held the index [steady] after the transfer of rights story," said Terra Investimentos analyst Christian Lupinacci.

Earlier, "Valor EconOmico," a local newspaper, reported on a deal between the company and the government in which Petrobras would receive 2 billion barrels as compensation from the Brazilian government to settle the "transfer of rights" issue.

Petrobras said that discussions between the firm and the government about the "transfer of rights" are ongoing. The Brazilian government endorsed Petrobras statement.

Vale shares also ended higher (VALE3 +0,70%), tracking iron ore prices abroad, while Natura shares (NATU3 +5,21%) had the best performance, still reflecting the company's first-quarter results. Qualicorp (QUAL3 -6,08%) fell after MSCI decided to remove the company from the MSCI Brazil index.

According to Guide Investimentos analyst Rafael Passos, investors in Brazil will keep monitoring news from abroad that could change the monetary policy trajectory in the United States. Markets are also in standby mode before the Brazilian central bank monetary policy decision, which will be announced Wednesday.

by Agencia CMA Latam

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