BRAZIL: DI Rates Trade Higher Amid Chinese Stimulus Euphoria

(RTTNews) - The one-day interbank deposit futures rates (DI rates) in Brazil are trading lower Tuesday, tracking the locally traded U.S. dollar amid investors' euphoria with the stimulus actions promoted by the Chinese central bank (PBoC), boosting emerging countries assets, as well as commodities prices.

"In China, local state media said that the country should adopt a more active tax exemption policy and allow companies to levy taxes on research and development investments, as well as accelerate the issuance of special bonds to finance local infrastructure projects for 1.35 trillion yuan, which gives breath to Brazilian assets," said Guide Investimentos' analyst Ignacio Crespo.

For Spinelli Corretora's chief economist, China's stimulus brought "euphoria" to Brazilian markets. Crespo added that there is optimism among investors with the "good performance" of PSDB pre-candidate Geraldo Alckmin to the presidential race in the October election in the "Roda Viva" TV show.

Near the end of the session, the January 2019 DI contract rate was at 6.705%, from 7.09% in the previous settlement, while the January 2020 DI rate was at 8.07%, from 8.405%. The January 2021 DI contract rate was at 9.04, from 9.31%.