Stock market fell 2.48% in August, 2nd month of losses; dollar also falls

The Ibovespa closed Tuesday (31) down 0.80%, at 118,781.03 points, reaching the second consecutive negative result. With today’s performance, the main Brazilian stock exchange index (B3) ends August at an accumulated low of 2.48% — the second consecutive month of losses, after a sharp drop of 3.94% in July.

The dollar also ended the day in devaluation, at 0.34%, and closed the month quoted at R$ 5.172 on sale. As for the Stock Exchange, August was negative for the US currency, which had losses of 0.73% against the real in the period, after shooting 4.76% in the previous month.

In 2021, both the Ibovespa and the dollar had a negative result: the indicator accumulated a drop of 0.20%, while the dollar dropped 0.32% in the year.

The dollar value reported daily by the press, including the UOL, refers to the commercial dollar. For those who are traveling and need to buy currency from exchange brokers, the value is much higher.

China influences the Stock Exchange…

The new negative result of the Ibovespa is explained, in part, by the drop in iron ore prices in China. The low pulled shares such as CSN (Companhia Siderúrgica Nacional, CSNA3) and Vale (VALE3), which fell 4.99% and 1.37% in the session, respectively.

… And local data help real

The release of local labor data, which came in better than expected by the market, contributed to the dollar’s decline today. Earlier, the IBGE (Brazilian Institute of Geography and Statistics) reported that the unemployment rate in Brazil reached 14.1% in the quarter ended in June, compared to 14.6% in the three months to May.

The forecast, according to a survey by Reuters, was that the index would be at 14.4% – 0.3 percentage point above that verified in the period.

In addition, as Fernando explained to Reuters Bergallo, operations director of FB Capital, “it is normal to see technical pressure on the last day of the month”, due to the formation of Ptax — an exchange rate calculated by the Central Bank that serves as a reference for the settlement of derivatives. At the end of each month, financial agents usually try to direct it to levels that are more convenient to their positions.

Yesterday was already a positive day abroad, and the real was not managing to take advantage of external optimism very well. (…) The perception that the reduction of stimuli [à economia] in the United States it will only start at the end of the year it started to leave the most favorable scenario [para ativos mais arriscados, como o real] internationally.
Fernando Bergallo, gives FB capital

(With Reuters)