The dollar operates higher on Tuesday (5), with investors around the world worried about the risk of a generalized recession.
In Brazil, at the opening, the Ibovespa, the stock exchange’s reference index, retreated 0.68%, to 97,942.28, following the negative climate of markets abroad, with no truce in the fears of a global economic recession.
The US currency jumped 1.31% earlier, at R$5.3950, a level that, if maintained until the end of trading, would correspond to a closing high since January 27 (R$5.4247) .
In this trading session, the Central Bank will auction up to 5,315 traditional foreign exchange swap contracts for the purpose of rolling over the maturity date of August 1, 2022.
The day before, the Ibovespa, the stock exchange’s reference index, dropped 0.35%, to 98,608.76 points.
The international devaluation of iron ore futures contracts harmed the performance of the metallic commodities sector, one of the most important in the composition of the Ibovespa. Vale fell 0.73%.
But the rise in oil favored Petrobras, which is equally relevant to the index. The company’s most traded papers rose 2.07%.
Weighing the factors that influenced the day’s result on the Stock Exchange, analysts again signaled concern with the approval by the Senate last week of the PEC (Proposed Amendment to the Constitution) that establishes a state of emergency to expand and create new social assistance.
The Stock Exchange has been showing losses due to a scenario that mixes fear of a strong slowdown in the main economies of the planet and the risk that the Brazilian government will harm the future execution of the Budget by increasing spending in an attempt to improve the popularity of President Jair Bolsonaro ( PL), who will run for re-election.
At the end of the second quarter of 2022, the Ibovespa sank 17.88%. This was the worst result since the 36.86% dip at the end of the first quarter of 2020. With a monthly drop of 11.5%, the Ibovespa also had its worst month in June since the 29.9% drop in March 2020.
The interest rates on DI contracts (Interbank Deposits) are again pointing higher after a few days of truce last week. Negotiated between banks, the DI rate rises when the sector expects that the Central Bank will be forced to increase the basic interest (Selic) to contain inflation.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
