For the third day in a row, the Ibovespa, the main index of the Brazilian Stock Exchange (B3), closed on Monday, Jan. 16, down 1.54%, at 109,212 points.
The day was of low liquidity because of a holiday in the United States, with investors fearing the judicial recovery of the retailer Americanas and with speculation about the increase in the minimum wage in a value above the budget.
The main national export product’s drop in the commodities market was also registered on Monday.
In China, there is the possibility of investigating companies that would have practiced irregularities in iron ore prices. This also influenced the stock market movements.
Against the falls in the market, retailers Magazine Luiza and Via rose 12.24% and 10.54%, respectively.
Another market concern is the beginning of the World Economic Forum in Davos, Switzerland, which is being attended by the Minister of Finance, Fernando Haddad, and the Minister of the Environment, Marina Silva.
The event started yesterday and will continue until next Friday. The possible topics the Brazilians address are the fiscal anchor, tax reform, the “anti-deficit” package, and the fight against hunger.
The dollar closed the session this Monday, 16, up 0.83%, quoted at R$ 5.14. Despite the day’s appreciation, the US currency has accumulated a 2.49% drop in January.
The devaluation of the real against the dollar was triggered by the external environment and doubts about Brazil’s fiscal policies.
Among them is the definition of the new value of the national minimum wage.
The US currency operated high throughout the day, oscillating between R$5.10 and R$5.12, and peaking at R$5.16.
The result was driven by the drop in the value of commodities, the threat of intervention in the Chinese real estate market, and the indefinition of the readjustment of the minimum wage above the R$1.3 thousand foreseen in the Budget.