Ibovespa, the benchmark stock market index in Brazil, ended higher for the sixth consecutive session on Wednesday, rising 0.29% to 86,051.83 points – a new record closing level.
The index was boosted by greater risk appetite abroad after the United States Federal Reserve Bank (Fed) showed in its meeting minutes that it would pursue a gradual increase in the country’s interest rates.
Shortly after the minutes, the Ibovespa surpassed 87,000 points for the first time in history, reaching 87,358.33 points. Near the end of the session, however, the Ibovespa gave up on most of the gains, hit by an initial profit-taking move.
According to Codepe Corretora economist Jos? Costa, the Fed’s minutes highlighted positive data from the US economy, but at the same time said that the interest rate increase would be gradual.
Traders believed that the document could point to a faster monetary policy tightening due to the stronger economy and rising inflation.
Analysts have also highlighted the strong trading volume seen on the Ibovespa since Tuesday, mainly focused on blue-chips. The trading volume Wednesday reached R$ 14.881 billion.
Meanwhile, amid a volatile trading session, the locally traded U.S. dollar rose 0.21%, to R$ 3.263, also due to the meeting minutes. Currency traders, however, highlighted the division among the board members regarding the inflation scenario in country.