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Stocks fall to two-month low on global recession fears

Stock market rises 2.12% and recovers 100 thousand points

For another day, the financial market lived a day of tensions amid the threat of global recession. The stock fell to the lowest level in two months. The dollar alternated highs and lows, but closed stable after two strong highs in a row.

The B3 Ibovespa index closed this Tuesday (27th) at 108,376 points, down 0.68%. Falling for the third time in a row, the indicator reached the lowest level since August 5th.

The stock market even opened higher, but reversed the movement after statements by members of the Federal Reserve (Fed, US Central Bank). This Tuesday, directors of the agency indicated that the monetary authority of the United States will continue aggressive in raising interest rates, even with the possibility of recession in the largest economy on the planet.

The statements also affected the foreign exchange market. The commercial dollar closed this Tuesday sold at R$ 5.377, with a decline of only 0.09%. The price started the day down, reaching R$ 5.29 in the first minutes of trading, but returned to operate close to stability, alternating small increases and small drops, after the opening of foreign markets.

The high interest rates in Brazil helped to hold back the pressure on the dollar, which yesterday reached its highest value since July 22nd. However, the Brazilian financial market was once again influenced by the outside world.

US stocks closed with mixed performance. The Dow Jones Industrial Companies Index fell 0.43%. The S&P 500, of the largest companies, fell 0.21% and closed at the lowest level since November 2020. The Nasdaq, of technology companies, went the opposite way and rose 0.25%.

In Europe, the pound sterling, which yesterday had fallen to the lowest level in nearly 40 years, partially recovered against the dollar today. However, the explosions in the gas pipelines linking Russia and Germany have raised fears of a further escalation in the Ukraine war.

*With information from Reuters

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