Dollar is falling this Friday, with an eye on Brazilian GDP and data from abroad; Ibovespa rises

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The day before, the main stock index on the Brazilian stock exchange fell 0.87%, to 129,020 points. The North American currency advanced 0.06%, quoted at R$ 4.9724. Dollar banknotes Pexels The dollar closed lower this Friday (1st), with investors keeping an eye on local and international economic data. Ibovespa, the main stock index on the Brazilian stock exchange, B3, in turn, operates on the rise. Today’s main highlight is the Brazilian Gross Domestic Product (GDP). According to the Brazilian Institute of Geography and Statistics (IBGE), the country’s activity grew 2.9% in 2023. In addition, industry and inflation data from the euro zone and economic indicators from China are also on the radar. See below for a summary of the markets. Dollar The dollar closed down 0.36%, quoted at R$4.9547. See more quotes. With the result, it accumulated: drop of 0.40% in the week; increase of 0.71% in the month; increase of 2.47% in the year. The day before, the US currency rose 0.06%, quoted at R$4.9724. Ibovespa At the same time, Ibovespa rose 0.12%, to 129,229 points. The day before, the index fell 0.87%, to 129,020 points. With today’s result, the Ibovespa accumulated: drop of 0.31% in the week; increase of 0.99% in the month; decline of 3.85% in the year. Understand what makes the dollar rise or fall CASH OR CARD? What is the best way to take dollars when traveling? DOLLAR: When is the best time to buy the currency? What’s moving the markets? Here, the main highlight this Friday (1st) is the Brazilian GDP. According to data released by IBGE, the country’s activity grew 2.9% in 2023, slightly above what was projected by the market at the beginning of the year, of 3.0%. The final result was very close to that of 2022, when Brazil’s GDP increased by 3%. Once again, the last quarter of the year shows a slowdown in the economy, this time closing with stability in relation to the previous quarter (0%). GDP had different dynamics in the first and second semesters. In the first half of the year, for example, economic activity was driven by an exceptional grain harvest. From July to December, the services sector, the main sector of the Brazilian economy, remained resilient and sustained a gradual slowdown due to the high level of the basic interest rate, the Selic. Once again, fiscal stimulus given to the economy boosted consumption figures, such as the real readjustment of the minimum wage and the setting of the Bolsa Família program at R$600. The job market, which reached record employment rates, also helped the economy to stay warm. According to Highpar reserach analyst Maykon Douglas, the highlight from a demand perspective was the 3.1% annual increase in family consumption, with the result driven by the strong job market, amid the double combination between increased occupation and average wages. “The reading makes us maintain the assessment that family consumption will probably be a key variable for the economy’s performance in 2024,” he stated in a report. Furthermore, the market also continues to reflect the government’s recent signals during the G20 meetings held this week. During the event, the Minister of Finance, Fernando Haddad, once again called for international collaboration so that the super-rich pay their fair contribution in taxes and stop taking advantage of ‘holes’ in tax systems for tax evasion. The economist and director of the European Tax Observatory, Gabriel Zucman, invited by Haddad to present a proposal for taxation in international cooperation for the super-rich, stated that this taxation tends to be progressive, and proposed a minimum rate of 2% to be charged on the wealth of billionaires. Abroad, attention is focused on new data from China and Europe. In the Asian giant, the official purchasing managers index (PMI) for the industrial sector, compiled by the country’s National Statistics Agency, fell from 49.2 in January to 49.1 in February. The index, which was below the 50 mark, signaled a contraction in the economy. This was the fifth consecutive reduction in the indicator, which increases pressure on the Chinese government to implement more stimulus measures, as Parliament prepares for its annual meeting next week. In the euro zone, inflation in the region made up of 20 countries fell from 2.8% in January to 2.6% in February. The core index, which excludes volatile food and fuel prices, reduced from 3.3% to 3.1%. Eurozone industrial activity, in turn, continued to contract in February, amid weak demand. The region’s manufacturing PMI, compiled by S&P Global, fell from 46.6 in January to 46.5 in February, below the 50 mark that separates growth from contraction, for the 20th consecutive month. *With information from Reuters

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