Ibovespa, the benchmark stock market index in Brazil, halted a three-day slump to rise 1.63% to 86,371.41 points Friday, after data on the U.S. labor market showed that wages grew less than expected.
“The data on the payroll was the dividing line for today’s trading session. The figures showed strong job creation, but despite that, wages and inflation are not being pushed so hard,” said Hersz Ferman, an economist at Elite Corretora.
Mirae brokerage operations director Pablo Spyer said wage data showed that U.S. GDP still has room to grow “without pushing inflation” and that it is possible to contract without paying higher wages.
The payroll overshadowed concerns over a possible global trade war after the U.S. President Donald Trump announced new duties on steel and aluminum imports. For analysts, Trump left open a possible negotiation with countries that will be hit by the measure, such as Brazil.
Meanwhile, the consumer price index in Brazil rose 2.84% in February from a year before, losing strength from the previous month and bringing expectations that the central bank may reduce its benchmark interest rate again.
The locally traded U.S. dollar closed the trading session down 0.39%, quoted at R$ 3.252, after data showed that in February the average wage for the hour worked in the United States performed below the market forecast. The indicator lowers the chances that the United States Federal Reserve Bank should hasten the pace of the interest rates hikes expected for this year.
For the coming week, Ferman expects that the Brazilian stock exchange should keep on tracking the American market closely, with the pace of monetary tightening in the U.S. Remaining as the main focus of the market.