SAO PAULO – Brazil's leading ADR index (in practice, non-US stocks traded in New York) closed higher on Friday (15) on the New York Stock Exchange (NYSE) after strong American market optimism, which led the Dow Jones to reach the level 28 thousand points for the first time in history.
Main driver One of the markets was White House economic advisor Larry Kudlow's talk that China and the United States were close to reaching a trade agreement. Investor optimism also added to US retail sales, which grew 0.3% in October, after dropping 0.3% in the previous month. Economists' median expectations are for an expansion of 0.2%, according to the Bloomberg consensus.
The AD Jones Brazil Titans 20 Index rose 1.78% to 22,809 points. EWZ iShares MSCI Brazil Capped ETF rose 1.58% to $ 43.15.
Among Brazilian blue chips, Vale's ADR (VALE3) was the best performing, up 2.32% to US $ 11.46, while Petrobras (PETR3; PETR4) rose 2.18%, Itaú Unibanco (ITUB4) ) recorded an increase of 1.36% and Bradesco (BBDC3; BBDC4) appreciated 1.39%.
Today, B3 is closed due to the Republic of Proclamation holiday in Brazil, but the US exchange is working. It is important to monitor the performance of ADR in international markets, because every step of this Friday must be reflected in the opening of trading on Monday (18) so that there is no mismatch between the price of shares traded in Brazil and the US.
US Dow Jones indexes, the S&P 500 and Nasdaq ended the session up 0.7% to 0.8%, renewing historic highs.
During the trade war, Kudlow said the talks reached consensus, but President Donald Trump was not ready to sign the agreement. "Trump likes what he sees but is not ready to sign a Phase 1 commitment, we have not closed the deal," he warned.
Despite good retail sales, not all US indicators are going well. The Empire State of the Federal Reserve NY index was below estimates, showing a reading of 2.9 points in November, against projections that it would reach 5 points.
Industrial production in the world's largest economy fell 0.8% in October, the biggest decline since May 2018. Wall Street estimates a 0.5% decline. Industry capacity utilization fell to 76.7% in October, the lowest level in more than two years.
Finally, on radar, the White House today released a telephone call transcript in April between President Donald Trump and Ukrainian leader Volodymyr Zelensky, who just won the election. The Democrat Party has filed an impeachment case against Trump based on a conversation held by the president on July 25 with Zelensky in which he allegedly asked Ukrainians to investigate Joe Biden from the Democrats.
In the transcript released Friday, Trump invited Zelensky to the White House and said they would discuss a lot. The conversation lasts 16 minutes.
Yesterday was a day of gains in the stock market, thanks to positive data from the Brazilian economy and rejection of news that China did not receive a fixed value of imports of US agricultural products to end the trade war. Ibovespa increased 0.47% to 106,556 points, with a trading volume of R $ 18 billion.
The commercial dollar rose 0.16%, to $ 4.1927 on purchase and $ 4.1934 sold.
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