Contrary to the relief abroad, the financial market had a nervous day amid the uncertainty about the economic team of the future government and after the speech by President-elect Luiz Inácio Lula da Silva. The dollar soared and rose more than 4%, approaching R$5.40. The stock market had its biggest daily drop since September 2021.
The commercial dollar closed this Thursday (10th) sold at R$5.397, up by R$0.215 (+4.14%). The price even slowed to R$5.26 around 10:45 am, but gained strength and closed close to the day’s highs.
The US currency is at its highest level since July 22, when it closed at R$5.50. In the rest of the planet, the dollar had a day of decline after the release of data showing the deceleration of inflation in the United States, which reduces pressures on the Federal Reserve (Fed, US Central Bank) to keep interest rates high. for a long time.
Nervousness also manifested itself in the stock market. The B3 Ibovespa index closed at 109,775 points, down 3.35%. The indicator is at the lowest level since September 29, the week before the first round of elections. At the worst moment of the day, around 4:30 pm, the indicator dropped 4.46%.
The Brazilian stock exchange also took off abroad. US stocks had their biggest daily gain in about two years as US inflation slumped.
Reply
When leaving the Centro Cultural Banco do Brasil, in Brasília, at the end of the afternoon, Lula criticized the reaction of the market. “I have never seen the market as sensitive as ours,” replied Lula, when asked by journalists about nervousness in the financial market.
The dollar and the stock market started the day under pressure after Lula announced, yesterday (9) night, that he will only start announcing the ministers after his return from his trip to Egypt. The situation worsened in the late morning, when the president-elect, in a speech to deputies from the allied base, criticized the federal spending cap and said that the spending cap should be discussed on an equal footing with social issues.
“Why are people made to suffer to guarantee such fiscal stability in this country? Why do people all the time say that it is necessary to cut spending, that it is necessary to have a surplus, that it is necessary to have a ceiling on expenses? Why don’t we establish a new paradigm?” Lula asked in his speech.
In the afternoon, volatility increased after the announcement that former Finance Minister Guido Mantega will participate in the transition team group that discusses the budget, planning and administrative management.
*With information from Reuters
