Global markets reacted with optimism on Wednesday (9) to Russia’s adoption of a less aggressive tone regarding its objectives with the invasion of Ukraine. In addition, expectations about the increase in oil supply helped to bring down the price of the commodity.
Reflecting the reduction in risk aversion, the dollar lost value against 17 currencies of emerging countries, considering a list of 24 currencies.
In the Brazilian foreign exchange market, the dollar closed down 0.77%, at R$5.010, the lowest value since February 23 – the day before Russian troops entered Ukrainian territory. At the lowest price of the day, the dollar had retreated to R$ 4.9850. Among emerging markets, the real presented the eighth best spot return against the US currency.
The Ibovespa, reference index of the Brazilian Stock Exchange, jumped 2.43%, to 113,900 points.
Brent oil, which is the most traded, dropped 12.5%, to US$ 112.86 (R$ 565.29) – the biggest daily drop since April 2020. The day before, the commodity had closed at US$ 127.98, up 15.86% in three days. The price of raw materials in the period came close to the high of US$ 146.08 (R$ 748), recorded on July 3, 2008.
The rise in oil was an early reaction of the market to the announcement, on Tuesday (8), by the United States and the United Kingdom of a ban on imports of oil from Russia, one of the main producers in the world.
In addition to this Wednesday’s optimism with the negotiations about the war, the downward movement of oil was influenced by the signs of the United Arab Emirates of support for an increase in the production of the commodity.
The country’s ambassador in Washington, Yousuf Al Otaiba, said on Wednesday that he is in favor of an increase in production. US Secretary of State Antony Blinken also said the UAE was supporting the addition.
Hours later, UAE Energy Minister Suhail al-Mazrouei said on Twitter that the country believes in “the value that OPEC+ brings to the oil market”, referring to the cartel formed by producing countries than the UAE. United Arabs are part.
Since the end of last year, OPEC has been refusing to respond to requests from the West to speed up the supply of raw materials.
In the broader context of the crisis, advances in negotiations between Russians and Ukrainians also impacted the recovery of markets.
Maria Zakharova, a spokeswoman for the Russian Ministry of Foreign Affairs, said that Moscow’s overthrow of the Ukrainian government was not in Moscow’s plans. She also said the Russians prefer to achieve their goal of securing Ukraine’s neutrality through negotiations.
Also showing willingness for a diplomatic outcome, Ihor Zhovkva, deputy chief of staff of Ukrainian President Volodymyr Zelensky, said he would agree to discuss his neutrality, as long as he has a guarantee of security and does not have to give up territories. “We are certainly ready for a diplomatic solution,” Zhovkva said in an interview with Bloomberg.
A new meeting between representatives of the two countries should take place this Thursday (10).
In the United States, the Dow Jones, S&P 500 and Nasdaq indexes rose 2.00%, 2.57% and 3.60%, respectively.
In Europe, the indicator that tracks the 50 largest companies in the euro zone soared 7.44%. The London Stock Exchange closed up 3.25%. Paris and Frankfurt jumped 7.13% and 7.92%, in that order.
On the Brazilian Stock Exchange, declines in companies in the basic materials sector prevented the Ibovespa from performing even better.
Vale sank 6.24%, leading the most relevant losses in the market, in a movement of investors seeking to make profits obtained with recent increases in the face of a scenario that could become more challenging for metallic commodities, according to Pedro Lang, head of income. variable of Valor Investimentos.
Vale also has investments in the nickel sector, whose global market almost came to a halt on Wednesday (9) after rising prices led China’s main commodity exchange to freeze trading on some of its most active contracts, according to the report. Financial Times.
The Shanghai Futures Exchange suspended trading on more than half of nickel contracts traded in mainland China after they rose by the maximum amount allowed for several days in a row.
At the start of Wednesday’s session, the benchmark nickel contract rose 17% to the equivalent of more than $42,000 a tonne after unprecedented moves in London brought trading to a halt.
The price of nickel, which is used in the batteries that power electric vehicles, started to rise in late 2021 as demand from automakers increased. It has accelerated in recent weeks amid fears that supplies from Russia would be disrupted.
Petrobras rose 0.31%, after spending practically the entire day in the red. The company controlled by the federal government did not achieve significant appreciation despite the possibility of short-term profits with the soaring price of oil in the international market.
Follow-up increases in the commodity have increased political pressure for Petrobras to review the international parity policy for setting fuel prices in Brazil, whose calculation method responds to the variation in the price of oil and the dollar, among other factors.
Despite the fluctuations caused by the war, since the end of last year there has been a movement of appreciation of the Brazilian currency. A combination of cheap stocks on the stock exchange, a devalued real against the dollar and a high interest rate has been attracting foreign investors to the domestic financial market.
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