The uncertainties in the international market did not affect the Brazilian stock market, which broke a record and closed above 166 thousand points for the first time. The dollar rose amid geopolitical tensions between the United States and Europe.
The Ibovespa index, from B3, closed this Tuesday (20) at 166,277 points, an increase of 0.87%. The indicator fell during the morning, but began to rise after the opening of stock exchanges in the United States, with the migration of foreign capital to emerging countries.
At the end of the afternoon, the stock market slowed down amid President Donald Trump’s one-year speech in office, losing 166,000 points. The indicator, however, reacted in the final minutes of trading, driven by shares in mining companies, banks and oil companies, sectors with greater weight on the Ibovespa.
Exchange
The euphoria in the stock market was not repeated in the foreign exchange market. The commercial dollar ended Tuesday selling at R$5.375, up R$0.016 (+0.3%). The price started the day on a strong rise, reaching R$5.40 shortly before 11 am, but slowed down throughout the afternoon.
The escalation of tensions between the United States and Europe continued this Tuesday, with the threat from French President Emmanuel Macron to activate a trade defense mechanism. The retaliation would allow the European Union to impose tariffs of up to 93 billion euros on American products after Trump reiterated threats to annex Greenland and threatened to raise tariffs on European products.
The European parliament’s decision to suspend the trade agreement between the European Union and the United States contributed to increased tensions. Closed in July last year, the agreement established a 15% United States tariff on European products.
The difference between Brazilian and American interest rates helped to contain tensions on the financial market in Brazil. Investors who fled US stock markets, which closed sharply, were attracted by high interest rates in Brazil, which reduced pressure on the dollar and the stock market.
Next week, the Central Bank’s Monetary Policy Committee (Copom) meets to define the direction of the Selic Rate (the economy’s basic interest rate). Currently, Selic is at 15% per year, at the highest level in almost 20 years.
