One day after the announcement of the proposed amendment to the Constitution (PEC) to hold the fuel readjustment, the dollar rose more than 1.5%. The stock market alternated highs and lows throughout the day, but ended with a small drop.
The commercial dollar closed this Tuesday (7) sold at R$4.874, up by R$0.079 (+1.63%). The inflow of foreign capital during the afternoon softened the rise of the US currency. At the peak of the day, around 11:20 am, the price reached R$ 4.92.
helped by the commodities (primary goods with international quotation), the stock market had a less tense day. The B3 Ibovespa index closed at 110,070 points, down 0.11%. Despite the drop in most shares, shares linked to mining and oil companies appreciated, reflecting the adoption of economic stimulus in China, the largest consumer of raw materials on the planet.
The financial market reacted to the announcement, yesterday (6) night of the government’s proposal to send a PEC to Congress to zero the Tax on the Circulation of Goods and Services (ICMS) on fuels, in exchange for compensating for losses in revenue to the states. The proposal raises the fear of worsening the imbalance of public accounts and of a more flexible spending ceiling.
Today, the National Confederation of Municipalities (CNM) estimated the losses for states and municipalities at R$ 115 billion per year. Of this total, R$ 27 billion would be losses for Brazilian cities. The real had the worst performance among the main global currencies on Tuesday.
*With information from Reuters
