The Ibovespa experienced a notable increase of 0.6% on Thursday, surpassing the 132,300 mark and rebounding from prior session losses. This uptick was primarily fueled by a significant rise in Vale’s stock, alongside robust performances from major banks in Brazil.
In recent days, iron ore prices have seen remarkable gains due to renewed optimism in China’s struggling real estate sector. The Chinese government has committed to implementing additional measures aimed at stimulating economic growth, which includes substantial rate cuts, financing announcements, and a proposed $142 billion capital injection into key financial institutions.
In the wake of these developments, Vale's shares surged over 4.5%, reflecting positive sentiment regarding its primary consumer. Meanwhile, leading financial institutions such as Banco Santander, Banco do Brasil, Itaúsa, and Bradesco recorded gains ranging from 0.6% to 2.1%.
Adding to the overall investor confidence, recent U.S. economic data indicated lower-than-expected jobless claims, signaling a stable labor market, alongside a robust 3% GDP growth rorted for the second quarter.
Year-to-date, the Ibovespa has decreased by 1,946 points or 1.45% in 2024 according to contracts for difference (CFDs) that track this key index. Analysts predict that the index will trade at 135,065.59 by the end of the current quarter, with a forecasted value of 132,291.11 over the next twelve months.