BRAZIL: DI rates close higher amid increased risk aversion

São Paulo, 11 - The one-day interbank deposit futures rates (DI rates) in Brazil closed higher, tracking the rise of the locally traded U.S. dollar after new developments in the trade war between...

São Paulo, 11 - The one-day interbank deposit futures rates (DI rates) in Brazil closed higher, tracking the rise of the locally traded U.S. dollar after new developments in the trade war between the United States and China have triggered risk aversion. The fear related to the Brazilian public accounts also weighed on local businesses. "Trade war has returned to the scene and can have a negative impact on investment and global growth," said Advanced Corretora's analyst Alessandro Faganello. The trade war between the United States and China raised risk aversion in global markets, particularly by depressing emerging countries' assets. In a report, Capital Economics (EC) economic team estimates that the Trump administration's proposed tariffs on imports from China - and the fact that neither side seems willing to back down - suggests that the trade war is moving to a stage in which the indirect effects become noticeable on the emerging countries, particularly in Eastern Asia. However, the domestic scenario ahead is equally challenging. Faganello noted that the House of Representatives should not vote on Eletrobras' privatization this year. According to him, that should have a negative fiscal impact. The January 2019 DI contract rate closed at 6.830%, from 6.795% in the previous settlement, while the January 2020 DI rate was at 8.20, from 8.12%. The January 2021 DI contract rate settled at 9.18%, from 9.09%. Olívia Bulla / Agência CMA Translation by Ricardo Gozzi http://www.agenciacma.com.br/esp/



Búsqueda

Suscríbase a nuestro newsletter

BRAZIL: DI rates close higher amid increased risk aversion

Banco Piano S.A. es Agente de Liquidación y Compensación y Agente de Negociación Propio registrado bajo el número de MATRICULA 320 de la C.N.V.

Banco Piano S.A. | San Martin 347 C.P.A.: C1004AAG - CABA - REP. ARGENTINA
Tel.: 4394-6891 | 4322-1511/5382/7692 | Fax: (54 11) 4325-6776 |    www.pianobursatil.com.ar

Posicionamiento en Buscadores - eMarketingPro | Diseño de Sitios Web - NetOne