On Monday, while the U.S. dollar dropped 0.62% to R$ 5.13, São Paulo’s Ibovespa index climbed 0.86% to 115,156 points.
Market caution persists due to Israel-Hamas tensions.
In the early hours, the dollar reached a peak of R$ 5.18. On the other side, Ibovespa touched a low of 113,448 points, marking a 0.63% drop.
Then, oil sector stocks gained traction. Specifically, brent crude prices rose by 4.22% to US$ 88.15. As a result, Petrobras shares climbed over 4%, lifting the Ibovespa index.
By late afternoon, markets showed signs of settling. Initially shaky assets started to stabilize. Investors are now gauging how far the Israel conflict might spread.
Should the conflict extend, a flight from riskier assets is likely. Furthermore, increased involvement from Iran could stir the oil market significantly.
Background
Israel’s Defense Department said it regained control of its border cities with Gaza this Tuesday. They recorded no invasions on Monday.
On Saturday, the day the conflict started, Hamas fighters broke through the Israel-Gaza barrier.
Richard Hecht, a military spokesperson, told reporters they are installing landmines there.
Hecht also said Israeli forces have killed about 1,500 Palestinian fighters since Saturday. So far, the conflict has caused 1,587 deaths.
A Palestinian health report on Monday listed 687 casualties. It didn’t specify between fighters and civilians.
The United Nations reported at least 900 Israeli casualties as of Monday night.