The dollar fell against the real in the first trades on Tuesday (18), amid the maintenance of some appetite for risk abroad, while, on the domestic scene, investors monitored polls of voting intentions before the second round of the presidential elections.
At 9:09 am (GMT), the spot dollar retreated 0.53%, to R$ 5.2734 on sale.
On B3, at 9:09 am (GMT), the first-maturity dollar futures contract dropped 0.18% to R$5.2885.
The day before, when good humor prevailed again in global markets after the strong losses of last week, the Brazilian stock market operated in a firm rise above 1% throughout the trading session, while the real advanced against the dollar on a day of widespread devaluation of the US currency.
Market concerns in the previous week with rising interest rates in the United States and the risk of a global recession in 2023 gave way this Monday to greater optimism on the part of economic agents, who turned to the corporate balance sheet season for American companies.
Statements by the new UK finance minister also pleased investors. Jeremy Hunt on Monday scrapped Prime Minister Liz Truss’ economic plan and slashed her proposed vast energy subsidy, launching one of the biggest shifts in British fiscal policy to stem a dramatic loss of investor confidence.
On the Brazilian stock exchange, the Ibovespa stock index closed on Monday (17) up 1.38%, at 113,623 points, after the 3.7% drop accumulated last week.
In exchange, the dollar fell by 0.48%, quoted at R$5.3010 for sale, reversing the trend observed last week, when it rose 2.17%.
In the same vein, the DXY index, which measures the strength of the dollar against a basket of developed countries’ currencies, dropped about 1%.
On American stock markets, the S&P 500 gained 2.65%, the Nasdaq rose 3.43% and the Dow Jones rose 1.86%.
Bank of America shares surged about 6% on Monday after the bank reported third-quarter earnings per share of 81 cents, above analysts’ average estimate of 77 cents, according to Refinitiv calculations. .
In Europe, London’s FTSE-100 stock index rose 0.90%, Frankfurt’s DAX rose 1.70%, and Paris’ CAC-40 rose 1.83%.
The move in the European market came on the heels of statements by the UK’s new finance minister. Tasked with halting a slump in the bond market that has raged since the government announced massive tax cuts on Sept. 23, the minister has reversed all the economic policies that helped Truss be elected prime minister just under six weeks ago.
On Monday, the pound rebounded from recent declines against the dollar, up 1.95% at $1.1390.
Former Foreign Minister Jeremy Hunt was appointed Minister of Finance last Friday (14), following the departure of Kwasi Kwarteng from office.
“I remain extremely confident about the UK’s long-term economic outlook as we fulfill our mission to move towards growth,” he said. “But growth requires trust and stability, and the UK will always blaze its own trail.”
Under the new plan, most of the £45bn in tax cuts not offset by the Truss government will be rolled back, and a two-year energy support scheme for homes and businesses is expected to cost well over £100bn. , will now only run until April.
After that, the government will review the best way forward, to come up with a targeted scheme that “costs the taxpayer significantly less than planned.”
Hunt said the planned changes to the tax cut will raise 32 billion pounds ($36 billion) every year.
The latest crisis to hit the UK began on 23 September, when new Prime Minister Truss and her then-Finance Minister Kwasi Kwarteng announced £45 billion in unfunded tax cuts to lift the economy out of years of crisis. stagnation.
Airlines stand out in the positive field; already MRV sinks more than 11%
On the Brazilian stock exchange, among the biggest rises of the day, travel and airline stocks stand out — CVC advanced 9.2%, Embraer rose 6.6% and Azul scored a gain of 6.1%, while Gol closed in increase of 4.7%, with the reduction of risk aversion among investors benefiting papers related to the resumption of domestic activity ahead.
MRV was the negative highlight, with a drop of 11.4%, after the construction company reported on Friday the operational preview of the third quarter, with a drop of 14% in launches in the period.
“The numbers were weak and we expect a negative reaction from the market, even considering the weak performance (and below the industry average) in recent weeks”, pointed out Guide analysts in a report.
with Reuters
Chad-98Weaver, a distinguished author at NewsBulletin247, excels in the craft of article writing. With a keen eye for detail and a penchant for storytelling, Chad delivers informative and engaging content that resonates with readers across various subjects. His contributions are a testament to his dedication and expertise in the field of journalism.
