The dollar fell against the real this Friday (2), getting on the way to a strong weekly low after hopes of a reduction in the Transition PEC and signs of moderation in the pace of monetary tightening by the US central bank sustained investor appetite at risk in the last few days.
Around 9:09 am (BrasÃlia time), the spot dollar retreated 0.67%, to R$ 5.1660 in the sale, well below the closing level of last week, of R$ 5.4079. On B3, the dollar futures contract for the first month fell 0.31% to R$5.1985.
The day before, the foreign exchange market, the spot commercial dollar was close to stability, retreating only 0.05%, to R$ 5.1970, on sale.
The Brazilian Stock Exchange closed down this Thursday (1st) with investors considering that there is a loss of breath in the country’s economic activity after the government announced a 0.4% growth in GDP (Gross Domestic Product) in the third quarter , slightly below the 0.6% projected by the market.
The Ibovespa index, the benchmark for stocks traded on the Exchange, fell 1.39% to 110,925 points.
GDP below expectations gave the market signs that the economy is slowing down and this scenario contributed to a negative performance on the Stock Exchange, especially at a time when investors are evaluating the development of the Transition PEC and the increase in public spending that the measure will provide.
The 4.01% drop in Petrobras’ most traded shares also weighed negatively on the Ibovespa, a day after the company presented its last strategic plan under the management of President Jair Bolsonaro (PL).
The state’s fall is linked to investors’ fear of changes in the company’s investment plan in the next government.
News about the easing of restrictions against Covid in China continued to animate the raw materials market.
Vale, which has the Chinese market as its main destination for its iron ore exports, recorded a rise of 0.55% in its common shares, shares with the highest trading volume on the Stock Exchange this Thursday.
China has signaled changes in tackling the health crisis after the biggest wave of demonstrations in the country’s recent history.
In the US stock market, the benchmark S&P 500 fell 0.09%, after having jumped 3.09% the day before on the euphoria sparked by statements by the chairman of the Fed (Federal Reserve)
Jerome Powell signaled on Wednesday (30) that the country’s monetary authority may increase its reference interest rate by 0.50 percentage points at its next meeting. If confirmed, this half-point hike in interest rates will put an end to an unprecedented series of four 0.75-point hikes.
The chance that the pace of monetary tightening will ease fears that the credit crunch will trigger a global recession in 2023.
With Reuters
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