Ibovespa follows the exterior and closes down 2%; dollar soars and almost zero losses for the week

The shield against external pessimism was short-lived and the Ibovespa today took a tumble along with the international stock exchanges. Although recent domestic news continues to be a positive bias for the Brazilian market, the index has been tainted by global bad mood. The trigger came from the prices of commodities which plummeted along with heavy stocks listed on the B3.

Oil prices in the international market fell more than 5% throughout the day, with fears of a recession in the world, in the face of escalating interest rates by Central Banks. In New York, the barrel of WTI ended the day trading below $80 and Brent was down more than 4% in recent trades. The thud was felt by Petrobras shares (PETR3;PETR4), which closed down more than 6%.

The oil company is one of the most important companies on the Ibovespa, along with Vale (VALE3), which ceded more than 2% today. “The Brazilian stock market is susceptible to commodities both high and low. On a very bad day for raw materials, it is natural that the Ibovespa does not react well”, says Juan Espinhel, investment specialist at Ivest Consultoria.

The Ibovespa closed the session this Friday (23) down 2.06%, at 111,716 points. The volume traded on the day was R$ 35.1 billion. Even with today’s drop, the benchmark index of the Stock Exchange accumulated a high of 2.22% in the week.

“As much as the Brazilian stock market has fallen sharply today, since August it has been performing better than the American market. And I believe it should remain that way, as we are still at pre-pandemic prices and companies, in general terms, are showing good results”, says Marco Noernberg, equity leader at Manchester Investimentos.

The session, on the other hand, was one of gains for the dollar, which soared on the general sentiment of risk aversion. Today, the American currency closed up 2.62% to R$ 5.248 in the purchase and R$ 5.249 in the sale. With the appreciation this Friday, the dollar almost erased the losses recorded in the week, accumulating a drop of only 0.2% in the period.

Future interest rates also practically neutralized today’s drop, even with the end of the monetary tightening cycle in Brazil for now. At the after hoursDIF25 rose 13 basis points to 11.61%, while the DIF27 and DIF29 contracts advanced 22 and 21 points, respectively, to 11.40% and 11.52%.

“With treasuries in the US renewing the maximums, we had a day of future interest rates rising in Brazil following the international scenario of high interest rates”, explains economist Fabio Louzada, from Eu me banco.

In the United States, there is no truce for the stock exchanges. The Dow Jones fell 1.61% to 29,592 points; the S&P 500 fell 1.72% to 3,693 points; and Nasdaq dropped 1.80% to 10,867 points.

“The atmosphere is pessimistic, with economic growth much lower than expected and inflation on the agenda, not giving in at this first moment”, concludes Noernberg.

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