RIO DE JANEIRO, BRAZIL – On the day economic indicators were released in Brazil, and there was some relief in the international market, the dollar dropped for the first time in three sessions, and the Brazilian stock market experienced a sharp hike. On Monday, June 29th, the dollar closed at R$5.425, down R$0.04 (-0.73 percent).
The currency traded down during virtually the entire session. At the peak in the day, around 12:30 PM, it was close to R$5.47 and experienced a slight bullishness. However, throughout the afternoon, the price dropped again until it stabilized just under R$5.43. The commercial dollar has now accrued a rise of 35.2 percent against the real in 2020.
One of the factors driving the dollar’s performance was the disclosure of the General Register of Employees and Unemployed (CAGED) results, which tracks the formal labor market. Although May saw the net loss of 331,900 jobs with a signed worker’s record book, the reduction in jobs was much lower than in April (net -860,500 jobs), pointing to the start of an economic rebound.
Market
The day was marked by profits in the stock market. The IBOVESPA index of the B3 (the Brazilian stock exchange), closed Monday at 95,735 points, up 2.03 percent. The indicator was in line with the foreign market. The Dow Jones index, on the New York Stock Exchange, closed the day up 2.32 percent.
In addition to the Brazilian economy indicators, the market reacted to the disclosure of indices that show a recovery in economic confidence in the Euro Zone and a 44.3 percent increase in home sales in the United States in May.
For several weeks now, financial markets across the globe have been experiencing a period of jitters as a result of the global recession caused by the aggravation of the novel coronavirus pandemic. In recent days, investments have ranged from potential profits from the relaxation of restrictions in several countries in Europe and regions of the United States to setbacks in the fight against the disease.
Source: Agência Brasil