Stock market falls and dollar advances under negative external pressure

Stock market falls and dollar advances under negative external pressure
Stock market falls and dollar advances under negative external pressure

Eurozone inflation data fuel high interest rate expectations worldwide

The Stock Exchange tried to recover from the firm drop suffered yesterday, but the negative exterior weighed on and the Ibovespa closed down this Wednesday (31). The index fell 0.82% to 109,522 points. The dollar, on the other hand, continued its appreciation trajectory against the real and closed up 1.74%, trading at R$ 5.2007.

With today’s result, the Ibovespa accumulated a high of 6.16% in August. In the same period, the dollar rose 0.45% against the real. The dollar had not closed above R$ 5.20 since the beginning of this month, on the 4th (R$ 5.2228).

The US currency gained strength abroad with prospects of higher interest rates in the United States and inflation data in Europe that also fuel expectations for higher interest rates in the bloc.

CPI inflation in the euro zone rose 9.1% in August compared to a year earlier, up from 8.9% in July. 8.9%, boosting the bet on an interest rate hike of 0.75 percentage point on September 8, the date of the next meeting of the European Central Bank (ECB).

The dollar could strengthen further in the short term with the Federal Reserve (Fed, the central bank of the United States) high, the energy crisis in Europe and the slower-than-expected recovery in China, says UBS Global. Wealth Management.

The climate of risk aversion caused the main US stock indices to close lower. The Dow Jones was down 0.65%, while the S&P 500 was down 0.53% and the Nasdaq Composite lost 0.30%.

In the local scenario, investors got to know data on the labor market in Brazil. The unemployment rate in the country was 9.1% in the moving quarter ended in July 2022. The result was below the one verified in the previous moving quarter (ended in April, 10.5%) and also below the result of July 2022. 2021 (13.7%), shows the Continuous National Household Sample Survey (Pnad ) released this Wednesday (31) by the Brazilian Institute of Geography and Statistics (IBGE).

The result was above the median of expectations of 27 consultancies and financial institutions heard by Valor, which pointed to a rate of 9% in the quarter ended in July. The range of projections ranged from 8.8% to 9.2%.

Ibovespa Highlights

Petrobras shares (PETR4) rose 2.94% after a fall of more than 5% the day before. Brent crude futures tumbled 2.24% amid the possibility of a global recession and comments from the Organization of Petroleum Exporting Countries and allies (OPEC+) that production cuts are not in the pipeline for next week.

PetroRio (PRIO3) turned during trading to close up 1.64% and 3R Petroleum (RRRP3) was up 0.51% after falling more than 1.6%.

Stocks linked to iron ore rehearsed recovery after some trading sessions, but had a timid performance. Vale (VALE3) fell 0.72%, Gerdau (GGBR4) fell 0.93% and Usiminas (USIM5) fell 0.37%.

EDP’s shares (ENBR3) rose 2.39% after the company announced the sale of the Mascarenhas hydroelectric plant, in Minas Gerais, for more than R$ 800 million.

With content PRO VALUEValor Econômico’s real-time information service

Economics reporter graduated from Cruzeiro do Sul University, with passages in the newsrooms of CNN Business, Consumidor Moderno and Record News

The article is in Portuguese

Tags: Stock market falls dollar advances negative external pressure

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