Dollar jumps more than 1% with protection seeking before 2nd turn

The dollar advanced more than 1% against the real at the opening of this Friday (28), with investors looking to protect their portfolios in the last trading session before the second round of the presidential elections, which will take place on Sunday, while they were also waiting for data. of inflation in the United States.

At 9:05 am, the spot dollar advanced 1.43%, at R$5.3785.

On B3, at 9:05 am, the dollar futures contract of the first maturity rose 0.80%, to R$ 5.3775.

After three consecutive falls, the Brazilian Stock Exchange started a recovery this Thursday (27). The Ibovespa index closed up 1.66%, at 114,640 points. The spot commercial dollar fell 1.48%, quoted at R$ 5.3020.

On the penultimate day of negotiations before the second round of the presidential election, which takes place next Sunday (30), the release of a letter in which former president Luiz Inácio Lula da Silva (PT) promises to combine fiscal and social responsibility, if elected , collaborated to alleviate some of the tension among investors who fear a strong expansion of public spending in case the PT candidate wins.

When the document was published, around 4:30 pm, the Ibovespa quickly jumped from 114,700 points to 116,235, when it registered the highest of the day. The dollar even fell momentarily from R$5.30 to R$5.25, approaching the lowest price of the day.

The euphoria ended in minutes, however, as the assessment that the text was vague began to predominate, although the attempt to align with the market was highlighted by analysts as a positive step.

The PT letter shared space in the political news with the escalation of attacks by Jair Bolsonaro’s (PL) campaign against the TSE (Superior Electoral Court), raising doubts as to whether the president will accept the results of the polls in case of defeat for Lula.

A battery of data relevant to the financial market, however, disputed attention with the polarized electoral dispute. Among the main information of the day are employment indicators in Brazil, the rise in interest rates in Europe and economic growth in the United States.

Despite the rise in most Ibovespa shares, there were declines in the metallic raw materials sector, one of the most important for the Brazilian Stock Exchange. Vale fell 3.56% before presenting its third quarter results.

Among the positive data for the domestic economy, the unemployment rate dropped again and reached 8.7% in the third quarter of this year. It is the lowest level since the second quarter of 2015 (8.4%).

On the New York Stock Exchange this Thursday, the S&P 500 parameter indicator fell 0.61%. On the positive side of the American market, there was a gain of large companies that are part of the Dow Jones index, which rose 0.61%. The negative pressure came from the 1.63% drop on Nasdaq, which concentrates technology companies with greater growth potential.

The American market worked attentively to the repercussion of the US GDP data. The country’s economy grew at an annual rate of 2.6%, but showed signs of slowing in consumer and business spending.

If, on the one hand, this shows that the US central bank’s policy of raising interest rates is succeeding in slowing the economy to stabilize inflation, on the other hand, it increases fears of recession.

Also trying to deal with escalating inflation, the European Central Bank raised its interest rate by 0.75 percentage points, in addition to changing lending rules for commercial banks.

Nineteen countries sharing the euro are affected by the central bank’s interest rate, now at 1.5% a year, the highest since 2009, Reuters reported.