The dollar had its biggest daily rise in six months, and the stock market had its biggest drop since last November on a day of nervousness in the financial market. The real depreciated more than the currencies of the main emerging countries six days before the second round of the presidential elections.
The commercial dollar ended this Monday (24) sold at R$5.303, up by R$0.155 (+3.01%). The price opened at R$ 5.21 and operated higher throughout the session, until it closed at the highest of the day.
With today’s performance, the US currency accumulates a drop of 1.7% in October. In 2022, the decline reaches 4.9%.
The stock market also had a turbulent day. The B3 Ibovespa index closed at 116,013 points, down 3.27%. It was the biggest daily low since November 26, 2021.
The index was pulled down by Petrobras and Banco do Brasil, which are among the most traded papers on the stock exchange. Petrobras’ common shares (with voting rights at shareholders’ meetings) fell 9.89%. Preferred shares (with priority in the distribution of dividends) fell by 9.2%.
Two factors contributed to the fall in the stock market. The first was the granting of a third term to Chinese President Xi Jinping. Although China reported growth of 3.9% in the third quarter, above forecasts, there are fears that nationalist and lockdowns to contain the covid-19 pandemic, put pressure on the second largest economy on the planet in the medium and long term.
The second factor was the proximity of the second round of the presidential elections. The proximity of elections usually causes volatility in assets in the days before the vote.
*With information from Reuters
