2017.09.1318:41:00UTC+00BRAZIL: Ibovespa Hits Record For Third Session Despite Political Turmoil

Ibovespa, the main stock index in the Brazilian market, rose 0.33% to 74,787.56 points Wednesday, hitting a record close for the third consecutive session despite the turbulent political scene following the arrest of JBS president Wesley Batista and a new inquiry against President Michel Temer.

The news led Ibovespa to fall in the morning, but in the afternoon the index recovered, boosted by higher oil prices and by the news that the Finance Minister Henrique Meirelles could run for the presidency in 2018.

"The political bias was strong today. Traders celebrated the possibility of Meirelles coming out as a presidential candidate. It is a name that appeals to the market," said Terra Investimentos analyst R?gis Chinchila. The minister, however, denied that he is a pre-candidate on his Twitter account.

Alfredo Sequeira, DNAInvest's CEO, said that "the global situation has helped Ibovespa to remain bullish." He pointed out that Petrobras shares (PETR3 -1.81%, PETR4 -1.07%) improved throughout the day driven by oil prices abroad.

Meanwhile, Vale's shares (VALE3 -1.39%) and steelmakers helped to restrain Ibovespa's rise amid a profit-taking movement.

The locally traded U.S. dollar rose 0.31%, to R$ 3,1390 amid fears that a pension reform vote may be postponed after Brazil's Federal Supreme Court authorized a new probe against Temer.

For the next few days, analysts believe that the focus should continue on the local political scene. The main doubt, however, is whether the new complaint will have the strength to trigger a profit-taking move and led the Ibovespa to fall.