Stock exchange rises nearly 10% awaiting US trillion dollar package – 3/24/2020 – Market


Global markets experienced a strong recovery on Tuesday (24) with the expectation that an economic stimulus package of around US $ 2 trillion will be approved by the United States Senate. The Brazilian stock market shot up 9.7%, at 69,729 points, the highest level since last Tuesday (17).

The commercial dollar quotation decreased 1% to R $ 5.084. Tourism is selling at R $ 5.37.

In the United States, the Dow Jones index rose 11.37%, the highest daily appreciation since 1933. The S&P 500 was up 9.4% and Nasdaq, up 8.12%.

In Europe, the Stoxx 600, an index that gathers the largest companies in the region, jumped 8.4%, the highest daily appreciation since 2008. London rose 9%, Paris, 8.4% and Frankfurt, 11%.

After two Democratic defeats in the Senate, Donald Trump’s Republican government trillion dollar package to ease the economic impact of the coronavirus on companies and families could be voted on Tuesday.

On Monday night, Democratic Senate leader Chuck Schumer and US Treasury Secretary Steven Mnuchin said they were confident of an agreement between Republicans and Democrats to approve the measures, which include checks to families and loans to businesses.

Democrats defeated the package in two votes on Monday (23). They call for more action from the unemployed and financial aid to the states.

In addition to the financial relief that the measures would bring, investors reacted positively to Trump’s willingness to resume activities in the U.S. by Easter, which will be celebrated on April 12.

The president said the United States has not taken drastic measures to combat car accidents and that deaths from the common flu are similar to those from the new coronavirus.

“We lose thousands and thousands of people a year to the flu. We don’t shut down the country. You can destroy a country like that by closing it,” he said in an interview with Fox News on Tuesday.

This year, Trump is running for re-election and analysts point out the Republican’s concern about the political loss of an economic crisis.

The price correction also contributed to the improvement in the market after the sharp falls of the last few days. Petrobras’ preferred (most traded) shares, for example, jumped 15% to R $ 13.25. Magazine Luiza shot 22.8% to R $ 37.09.

Gol and Azul airlines also had strong increases after cutting the offer of flights. The sector is one of the most affected in the coronavirus crisis, with flight cancellations, border closures and a rise in the dollar.

After discussions between the government, Anac (National Aviation Agency) and companies, it was decided that there will be at least one daily outward flight and one return flight between the capitals starting this Saturday (28).

With the sharp reduction in the offer, Gol’s shares rose 16.9%, to R $ 8.10 and Azul’s, 15.5%, to R $ 16.17.

(With news agencies)

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