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Ibovespa, the benchmark stock index in Brazil, closed down 0.4% Thursday at 76,283.16 points, tracking the path of emerging markets after China reported that its Gross Domestic Product (GDP) grew 6.9% in the third quarter, at a slower pace than the expected by investors.
The Chinese figures negatively impacted on commodities prices. But contrary to the more than 3% fall in iron ore, Vale's shares rose 2.26%, limiting Ibovespa's deceleration, after reported its production data for the third quarter, which had a record high.
"Despite the price of the iron ore closing down, Vale had a record production in the quarter, creating an expectation of good financial results for the period," said Vitor Suzaki, an analyst at Lerosa Investimentos.
According to ?lvaro Bandeira, the chief economist at Homebroker Modalmais, the Chinese question was the primary factor that soured the mood in the Brazilian market Thursday.
"The data have raised concerns about the slowdown in China's economy," Bandeira said.
Meanwhile, the locally traded U.S. dollar unexpectedly closed up. The greenback's rise was not expected because President Michel Temer's victory in the lower House suggested a low bias. Nevertheless, the American currency rose 0.34%, quoted at R$ 3,176. According to analysts, the U.S. Dollar rise against the Brazilian real may have been caused by some timely caution among investors.
For Friday, investors are waiting for the preliminary data on October's inflation in Brazil. If it continues to deflate, the Ibovespa's momentum is positive, Suzaki said. Bandeira noted that investors also would keep an eye on the speech of the U.S. central bank chairwoman Janet Yellen.
