Expectations of a slowdown in the US economy and indications that the Brazilian Central Bank (BC) is close to ending the cycle of high interest rates made the financial market have a peaceful day. The dollar fell and returned to close to R$5.2. The stock market rose more than 2% and reached the highest level in almost two months.
The commercial dollar ended this Thursday (4) sold at R$ 5.22, with a fall of R$ 0.058 (-1.09%). The price started the day high, but reversed the trend following the international market, until closing close to the lows of the day.
Despite today’s fall, the dollar still accumulates a high of 0.89% in the week. Last Friday (29), the currency was being sold at R$ 5,174.
The stock market had another day of strong gains. The B3 Ibovespa index closed at 105,892 points, up 2.04%. Driven by the disclosure of higher-than-expected company profits and by the bet on the end of the highs in the Selic (basic interest rates of the economy), the Brazilian stock exchange closed at the highest level since June 9.
After the end of the Monetary Policy Committee (Copom) meeting, which increased the Selic to 13.75% per year, the Central Bank issued a statement in which it admits that it will increase interest rates to 14% per year at the next meeting, at the end of September, and should end the cycle of hikes in basic interest rates, which have been rising since March last year. Bets on the end of the interest rate hike favor the stock market, because it encourages investors to seek out riskier investments, such as stocks.
In addition to the internal impulse, the financial market had help from abroad this Thursday. The dollar fell across the planet, based on the expectation of the release of employment data in the United States tomorrow (5). If the job market in the United States slows, the chances increase that the Federal Reserve (Fed, US Central Bank) will start reducing basic interest rates in 2023.
*With information from Reuters
