Financial market indicators revealed the concern of investors on Tuesday (2) about the growing tensions between the United States and China. The world’s stock markets were mostly down, while the dollar had global appreciation after four days of decline.
In Brazil, the spot commercial dollar rose 1.15%, while the Ibovespa, the stock exchange’s reference index, dropped 0.06%, to 102,155 points.
In New York, the S&P 500 indicator, a parameter for the US stock market, dropped 0.60%. In Europe, the index that tracks the region’s top 50 companies lost 0.48%.
In Asia, the Hong Kong Stock Exchange closed with a drop of 2.36%. In Taiwan, the main stock index fell 1.56%. Chip makers’ roles have been undermined with rising geopolitical tensions.
“Markets retreat this Tuesday with the global news giving much attention to the possible visit of the President of the US Chamber, Nancy Pelosi, to Taiwan, under harsh statements and threats from the Chinese government”, commented the team at Ativa Investimentos this morning. . “The escalation of tensions between the US and China has sent stocks in Asia crashing and weighing on markets.”
A barrel of Brent oil rose 0.49% to US$100.52 (R$ 518.74), after a 9% drop the day before, as the market digested data on the slowdown in the Chinese economy.
Despite the weak performance of the shares of major exporters, the Brazilian exchange market closed close to stability this Monday (1st). The spot commercial dollar rose 0.07%, quoted at R$5.1770.
Also on Monday, the Brazilian Stock Exchange closed down, after a strong recovery in July. In addition to an adjustment movement, with investors pocketing profits from last month, the negative performance of the commodities sector also weighed on the downturn in the domestic market. The Ibovespa, the stock exchange’s reference index, dropped 0.91%, to 102,225 points.
A private survey carried out by Caixin and released this Monday showed that industrial activity grew more slowly than expected in July, after having improved in June, when the widespread lockdowns against Covid were lifted.
An official survey released on Sunday had already indicated that the sector actually contracted last month, Reuters reported.
Reflecting the devaluation of oil, the most traded shares of Petrobras closed with a drop of 1.38%. Vale, which has China as the main destination for its iron ore exports, fell 2.39%.
In July, the Ibovespa rose 4.69%, the highest monthly growth since March. The movement was in line with that of the American market. In New York, the S&P 500 jumped 9.11% in July, hitting its biggest monthly gain since November 2020.
The rise in stock markets last month is associated by experts with the prospect that the slowdown in the US economy could prevent more aggressive hikes in the Fed’s interest rate (Federal Reserve, the US central bank).
With less chance of making higher gains from US Treasury rates, investors took more risks in the stock market, which has also been causing the dollar to depreciate globally.
In Brazil, the Central Bank’s Copom (monetary policy committee) will release the basic interest rate on Wednesday (3) and a rise of 0.5 percentage point is widely expected, which would take the Selic to 13.75% per year.
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