untitled design

Dollar operates higher with risk aversion, Europe and holiday on the radar

O dollar rose 0.22%, quoted at R$ 5.165, around 9:15 am this Tuesday (6), favored by the continuity of risk aversion among investors, who are looking for safer assets amid concerns about the external scenario and before the September 7th holiday in Brazil.

The market continues to monitor the developments of the natural gas supply crisis at Europe , with Russia suspending the shipment of the product through its main pipeline on the continent. Fears involve a risk of recession in the region as winter approaches, increasing demand for gas.

O central bank will hold an auction of up to 15 thousand traditional foreign exchange swap contracts in this trading session for the purpose of rolling over the maturity date of October 3, 2022.

On Monday (5), the dollar had a decline of 0.64%, to R$ 5.153. already the Ibovespa recorded an increase of 1.21%, quoted at 112,203.35 points.

overall feeling

Investors’ global risk aversion, 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 cycle of interest rate hikes in United States .

The process of raising the US rate continued in July with a new increase of 0.75 percentage point. However, the Federal Reserve signaled that it could make smaller increases as the country’s economy already shows signs of deceleration, 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 also monitor the state of the economy in China , which also shows 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.

Test your knowledge about the Ibovespa

Let’s start with an easy one: what is the Ibovespa?

Who is responsible for calculating the Ibovespa?

What types of assets are eligible to be listed on the Ibovespa?

Which of these is NOT a criterion for a stock to enter the Ibovespa

How many shares are currently in the Ibovespa theoretical portfolio?

How often is the Ibovespa theoretical portfolio reviewed?

What is the most important stock on the Ibovespa?

What is the smallest share on the Ibovespa?

Each Ibovespa point is equivalent to 1 real. This statement is

What is the historical record for closing the Ibovespa?

Try again!

Tip: follow CNN Business to understand more about Ibovespa

Nice job!

You know a lot about the Ibovespa, but you could know a little more

Sensational!

Congratulations! Are you an Ibovespa expert?

*With information from Reuters

Source: CNN Brasil

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular