Dollar nears 5 reais and the Stock Exchange closes at 120 thousand points
The quotation of the commercial dollar approaches R$5 this Friday (Nov. 4). The US currency, which closed at R$ 5.13 the day before, fell to R$ 5.03 this morning.
The Ibovespa, the main index of the B3 (São Paulo Stock Exchange), rises more than 2.50%, to 119,821 points.
The markets in Brazil surf on the international optimism caused by rumors that the government of China should reopen the economy and abandon the policy of restrictions against the covid-19, a measure that contributes to global economic growth.
In Asia, the Shanghai index closed up 2.43 percent, while Hong Kong’s Hang Seng advanced 5.36 percent.
The Dow Jones was up 1.08% in the US, and the S&P 500 was up 1.34%. Europe’s main markets were also up:
DAX (Germany): +2.31%;
Euro Stoxx 50 (Eurozone): +2.53%;
IBEX 25 (Spain): + 1.27%;
FTSE MIB (Italy): +2.10%;
FTSE 100 (United Kingdom): +2.40%.
The United States saw 261,000 jobs created in October. The unemployment rate rose to 3.7% in the month, more than forecast by the market.
The negative data for the US labor market indicates that the Fed (Federal Reserve, the country’s central bank) may reduce the intensity of interest rate hikes.
The North American monetary authority may raise the basic rate by 0.5 percentage points, lower than the previous rise of 0.75 percentage points. Currently, it is in the range of 3.75% to 4% per year.
With lower interest rates, the USA attracts fewer resources to the country.
Investors see more opportunities to apply resources in emerging countries, such as Brazil.
The market argues that the fall in the dollar rate is due to foreign investment in Brazil after the election result.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.02%
185,147.15
-0.02%
64,866.61
-0.87%
11,315.26
-1.14%
3,049,121
-0.29%
2,544.56
+0.40%
59,978.22
-0.31%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 185,147.15 | -0.02% | +21.85% | 185,188.13 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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