On a day of tension in the domestic and foreign markets, the dollar closed above R$5.70, after touching R$5.80 during the session. The stock market fell more than 1.5% and reached its lowest level in three months.
The commercial dollar ended this Friday (8) sold at R$5.737, an increase of 0.062 (+1.09%). The price reached R$5.79 at the day’s high, around 2pm, but slowed down in the final hours of trading.
Despite the rise this Friday, the US currency ended the week with a drop of 2.25%. The currency accumulates an increase of 18.22% in 2024.
On the stock exchange, the day was more turbulent. B3’s Ibovespa index closed at 127,830 points, down 1.43%. The indicator reached the lowest level since August 7th.
Both domestic and international factors affected the financial market. In the domestic scenario, the delay in announcing the spending cut package and the announcement that the inflation accelerated in October influenced the negotiations.
The expectation that the Central Bank will have to raise interest rates beyond what was expected due to the increase in inflation caused the stock market to fall. This is because investors prefer to migrate from riskier investments, such as shares, to fixed income, such as National Treasury bonds, in times of high interest rates.
Regarding mandatory spending cutting measures, this Friday’s meeting to define the final details It started around 3pm and ended around 6pm. The ministers left the meeting without speaking to the press, and the announcement of the actions was scheduled for next week.
In the external scenario, expectations surrounding President-elect Donald Trump’s government and China brought turbulence to the global market. A stimulus package from Chinese regional governments was considered small by investors, which caused the price of commodities (primary goods with international prices), affecting exporters such as Brazil. In the United States, Trump reappointed ultra-protectionist lawyer Robert Lighthizer as the country’s trade representative.
*with information from Reuters
