BRAZIL: Stocks Rise And Ibovespa Reaches New Record Level

(RTTNews) - Data showing a double-digit increase in China's imports in September boosted commodity prices and led the Brazilian stock market index Ibovespa to climb 0.41% Friday to 76,977.68 - a new record closing level. Vale's shares, an index heavyweight, rose 6%, boosted by higher iron ore prices.

"China's trade balance surprised and came in very strong. Iron ore prices were up 4%. Also, data regarding iron ore consumption in September showed that China is increasing its inventories for the winter. That was very good for Vale's shares," said Magliano Corretora's analyst Pedro Galdi.

Steelmakers shares also benefited from higher commodity prices. Usiminas, CSN and Gerdau ended the session 6.39%, 5.9% and 3,47% higher, respectively, as well as Fibria stocks, which rose 2.11%. China is the primary market for the company's products.

The chief economist of Gradual Investimentos, André Perfeito, added that United States inflation data, which showed a smaller-than-expected increase in consumer prices last month, contributed to the Brazilian stock market positive performance.

Galdi forecasts that the Ibovespa could reach 77.000 points on Monday, as traders brace to the local corporate earnings season an to a much awaited Congress vote to the pension system reform bill.

Perfeito expects potential upward pressures on oil prices - and to the Ibovespa as well - as tensions between Iran and the United States build.

The locally traded U.S. dollar fell 0.69%, to R$ 3.1500, as low inflation in the U.S. increased the chances of a more gradual rise in the country's interest rate.

"Markets were expecting a slightly stronger inflation. Since the number was below expectations, there was a correction. And there was also less liquidity" because of the recent holiday in Brazil, said Haitong Brasil economist Flávio Serrano.