The dollar advanced about 2% and was traded above the BRL 4.70 mark this Friday (22), boosted globally by bets on greater aggressiveness by the US central bank on its monetary tightening, while local political news heightened investor caution.
At 9:10 am, the spot dollar advanced 1.97%, at R$ 4.7094 on sale. The dollar closed the last session, on Wednesday (20), down 1.03%, at R$ 4.6186.
The Central Bank will auction up to 15,000 traditional foreign exchange swap contracts in this trading session for the purpose of rolling over the maturity date of June 1, 2022.
The Brazilian Stock Exchange resumes operations this Friday after remaining closed the day before due to the Tiradentes holiday.
In the session on Wednesday (20), the Ibovespa closed down 0.62%, at 114,343, which represented the fourth consecutive drop in the stock index.
The movement was driven by shares of commodity exporters such as Vale and Usiminas, after companies reported volumes of steel and ore production below analysts’ expectations.
Natura shares also closed sharply lower on Wednesday, 15.6%, with market analysts predicting weak results from the cosmetics company in the first quarter of 2022. The numbers will be released on May 5th.
“Overall, we expect a weak quarter, driven by still-challenging dynamics in Avon’s Latin American operations, operational deleveraging at TBS (The Body Shop) and weaker performance at Avon International due to the conflict in Russia and Ukraine.” , say XP analysts.
Year-to-date, Ibovespa gains are still around 9.1%, driven by raw material exporters and large banks, on the radar of foreign investors looking for rich returns in emerging markets.
In a global macroeconomic scenario that has favored the attraction of resources to the Brazilian market with the rise in commodities and the war in Ukraine pushing investors away from Europe, the dollar returned to retreat against the real on Wednesday.
The commercial dollar dropped 1.04% in the last session, quoted at R$4.6190 for sale. In the year, the US currency has already retreated approximately 17% against the real.
Global interest rate hike
In the United States, the session on Thursday (20) was marked by a feeling of greater aversion to risk on the part of investors.
The Nasdaq index, with a greater presence of technology companies, lost 2.07%, while the S&P 500 dropped 1.48% and the Dow Jones fell 1.05%.
The mood of investors reflected signals transmitted by the president of the Federal Reserve (Fed, the central bank of the United States) about a more aggressive stance in the process of raising interest rates to fight inflation, with possible impacts on the recovery of economic activity in course. in the region.
Fed Chair Jerome Powell said a 50-percentage-point increase in interest rates would be “on the table” when the central bank meets on May 3-4 to approve the next hike this year. Powell also signaled that a series of half-point increases may be needed in an aggressive set of Fed actions.
Tech stocks end up being the most penalized by investors, in an environment of higher expected interest rates ahead that tends to reduce the profits projected by analysts for the digital businesses in the long term.
In the sector, the shares of Netflix returned to close in the negative field this Thursday, down 3.41%, after the fall of 35.1% in the previous trading session.
The massive sales come after the streaming company reported a loss of 200,000 subscribers in the first quarter of the year, as well as indicating that another 2 million are expected to leave by July.
With Reuters
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