O dollar rose 0.07%, quoted at R$ 5.205, around 9:25 am this Thursday (1st), hovering around stability and alternating between slight positive and negative variations while the market remains averse to risks abroad and reflects a Gross Domestic Product (GDP ) of Brazil higher than expected.
The external bad mood worsened after the release of industrial data from China that indicated a deepening of the country’s economic slowdown, which tends to harm exporters of commodities from the perspective of lower demand.
In addition, record inflation in the euro zone in August and data indicating a still buoyant job market in United States gave strength to bets on more aggressive interest rate hikes, a bad scenario for the world economy.
On the other hand, Brazilian GDP in the second quarter was up 1.2%, beating expectations and indicating a stronger economy, with a more positive domestic scenario that could attract investment amid signs of weakness abroad.
In this trading session, the Central Bank will auction up to 15 thousand traditional foreign exchange swap contracts for the purpose of rolling over the maturity date of October 3, 2022.
On Wednesday (31), the dollar rose 1.74% to R$5.20. already the Ibovespa ended with a drop of 0.82%, at 110,430.64 points.
overall feeling
The global risk aversion of investors, triggered by fears about a possible generalized economic slowdown due to a series of interest rate hikes around the world to contain record levels of inflation, has varied in intensity depending on expectations about the interest rate hike cycle in the United States. United.
The process of raising the US rate continued in July with a new increase of 0.75 percentage point. However, the Federal Reserve has signaled that it could make smaller hikes as the country’s economy already shows signs of slowing, seeking to avoid a recession.
Higher interest rates in the United States attract investments for the country’s fixed income due to its high security and favor the dollar, but harm markets and stock exchanges around the world, including the North American ones.
Investors are also monitoring the situation of China’s economy, which is also showing signs of a slowdown linked to a series of lockdowns in relevant cities. The expectation is that the Chinese government will intensify an effort to stimulate the economy, while facing difficulties to reverse a situation of low consumption by the population, which impacts the country’s demand for commodities.
Even so, the Ibovespa and the real found room for recovery with an improvement in the mood of the market, supported by the positive outlook for commodities, a stronger domestic economic scenario and a reduction in the perception of risks in relation to the elections. The scenario, however, may change depending on the degree of risk aversion abroad.
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*With information from Reuters
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
