Vale, CSN Mineração and Bradespar rise, after ore jumps more than 10% (Image: Reuters/Washington Alves)
The shares of mining companies listed on the Brazilian stock exchange are operating at an increase this Monday (30), in line with the performance of the iron ore.
At around 12:10 pm (Brasília time), the papers of the Vale (ELECTION 3) rose 1.20%, quoted at R$64.73. Already Bradespar (BRAP4) jumped 1.43%, to R$ 20.59, and CSN Mineração (CMIN3) 0,72%, a R$ 6,96.
Ore, in turn, soared more than 10%, to a high of almost three months, with the improvement in demand prospects due to the real estate stimulus in China, the main consumer market for the commodity, and a series of monetary easing policies. .
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The most traded January ore contract on the Dalian Commodity Exchange (DCE) jumped 10.71%, to $117.14 a ton. The reference for November on the Singapore Stock Exchange rose 9.76%, to 112.05 dollars a ton.
Chinese central bank stimulus (PBoC) involves asking banks to reduce mortgage rates for existing home loans before October 31st. In reaction, the exchange Shanghai advanced 8.06%, its biggest daily gain in 16 years.
Stimulus in China
In the PBoC's stimulus to the Chinese economy, commercial banks must, in batches, reduce interest rates on existing mortgages to no less than 30 basis points below the LPR rate, the central bank's benchmark rate for mortgages.
Existing mortgage rates are expected to be reduced by about 50 points on average.
Throughout the Chinaa series of measures, including reductions in down payment fees and mortgage rates, were introduced this year to support the struggling housing market.
But stimulus measures have struggled to boost sales or increase liquidity in a market shunned by buyers and that remains a major drag on broader economic growth.
Adding to these efforts, the city of Guangzhou announced on Sunday the end of all restrictions on home purchases, while Shanghai and Shenzhen said they will ease restrictions on home purchases by non-local consumers and lower the minimum entry fee for first home buyers for no less than 15%.
Sunday's announcements came after China on Tuesday unveiled its biggest stimulus package since the Covid-19 pandemic to lift the economy out of its deflationary state.
The reduction in the mortgage rate set by the central bank aims to alleviate the mortgage burden on property owners, seeking to boost the real estate market and weak domestic consumer demand.
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