The dollar advanced against the real this Monday (7th), after having dropped almost 5% last week, with fears about the extra-ceiling spending plans of president-elect Luiz Inácio Lula da Silva (PT) offsetting the appetite for international risk.
At 10:01 am (GMT), the spot dollar advanced 0.62%, at R$ 5.0838 on sale.
On B3, at 10:01 am (GMT), the dollar futures contract of the first month rose 0.43%, to R$ 5.1055.
Last Friday (4), at the end of the first week of the Brazilian financial market after the end of the 2nd round of elections, there were consistent gains in the Stock Exchange and a fall of the dollar against the real.
Analysts report that the election of Luiz Inácio Lula da Silva (PT), who has a good reputation outside the country, and the beginning of the transition process removed uncertainties about the solidity of democracy in the country. This resulted in an increase in the flow of foreign investments in the local market.
The winds became even more favorable for the attraction of dollars from international investors this Friday (4), when the rumor gained strength that China may relax measures to combat Covid. This expectation benefited not only Brazil, but also other emerging countries that are exporters of raw materials.
The spot commercial dollar closed the day down 1.42%, quoted at R$ 5.0510 on sale. In this week’s result, the American currency fell 4.73% against the real. It’s the biggest weekly pullback since late June.
In the stock market, the Ibovespa rose 1.08%, to 118,155 points, and throughout the day, the stock exchange reference index reached a maximum of 120,039 points. In the accumulated result for this week, the stock market climbed 3.16%.
Actions linked to the export of iron ore, steel and other goods that have China as their main destination soared on Friday. Vale jumped 7.59%. Steel companies Usiminas and CSN advanced 7.65% and 6.34%, respectively.
Brazil’s main trading partner, China should ease restrictions on international flights, which still face strict controls due to the policy to combat Covid, sources close to Chinese authorities said, according to Bloomberg news agency.
Currently, airlines carrying contaminated passengers are suspended from routes within the country for about two weeks. Beijing’s intention is to end this punishment.
Bottlenecks caused by the attempt to eliminate cases of Covid in China are among the main causes of the shortage that has been causing a worldwide rise in consumer prices.
The advance of the Brazilian Stock Exchange was not greater due to the 5.51% drop in Petrobras shares this Friday, after analysts at Goldman Sachs cut the recommendation of the oil company’s shares from “buy” to “neutral”, arguing an increase in uncertainty surrounding the policies to be adopted in the coming years.
The day before, Petrobras had reported a net profit of R$46.09 billion between July and September, up 48% from the same period last year, as oil prices soared.
To worsen the mood of investors regarding the company’s shares, the Public Ministry with the Federal Court of Auditors asked for the suspension of payment of dividends by Petrobras, reported Reuters.
In the opposite situation to that of the oil company controlled by the government, the market for assets linked to the production and export of oil gained strong appreciation also due to the possibility of greater opening in China, the country that consumes the most raw material.
Among the companies with the biggest gains on the Ibovespa, the private oil company 3R Petroleum registered a rise of 7.16% in its shares.
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