The financial market had a day of volatility in the last session before the first round of the presidential elections. The dollar closed stable, after rising until early afternoon and then falling. The stock market had a strong recovery, boosted by shares in mining companies and retailers.
The B3 Ibovespa index closed this Friday (30th) at 110,037 points, up 2.2%. The indicator started the day stable, but started to rise during the morning, helped by actions of retailers and mining companies, which took advantage of the recovery of commodities and the expectation of falling interest rates after the Central Bank ended the Selic high cycle ( economy’s basic interest rate).
The Brazilian stock market ended September with a rise of 0.7%. Yesterday (29), the Ibovespa had reached its lowest level since the beginning of August.
The foreign exchange market also had a volatile day. The commercial dollar closed the day sold at R$5.395, with a drop of only 0.02%. Until early afternoon, the price operated above R$5.40, but fell to R$5.33 around 2:30 pm, based on news about the future economic team from 2023. As the information was not confirmed , the currency reversed the decline and closed stable.
With today’s performance, the dollar ended September up 3.7%. The US currency alternated highs and lows throughout the month, dropping to R$5.09 on the last 12th. However, the worsening of tensions in the international economy, with threats of recession in Europe and the United States, made the currency gain strength in the last 10 days.
Despite the external instabilities, the day was dominated by expectations regarding the first round of the general elections this Sunday (2). The real detached itself from the currencies of other emerging countries, which devalued against the dollar this Friday. While the Brazilian stock market recovered, the North American stock exchanges had a strong fall and registered the lowest level in the year.
The Dow Jones Industrial Companies Index dropped 1.7%. The Nasdaq of tech companies lost 1.51%. The S&P 500, one of the biggest companies, fell 1.48%. Fears that the Federal Reserve (Fed, US Central Bank) will raise interest rates in the largest economy on the planet beyond what was expected dominated the international market this Friday.
*With information from Reuters
