Dollar opens in stability; follow – 07/18/2023 – Market

The dollar opened with little change against the real this Tuesday (18) after registering a high session the day before, on a negative day for currencies from commodity exporting countries after weak data on the Chinese economy.

At 9:03 am, the spot dollar retreated 0.08%, to R$ 4.8037 in the sale. On B3, the dollar futures contract for the first month fell 0.09%, at R$ 4.8150.

Investors await the release of data on retail sales in the United States and pronouncements by Fed officials (Federal Reserve, the US central bank), in search of clues about the future of interest rate policy in the country.

The Brazilian Stock Exchange closed higher and recovered 118,000 points on Monday (17) after the release of data on economic growth in China and Brazil, which indicated a slowdown in both countries. In the local market, however, the numbers endorsed the bets of a cut in the Selic (basic interest rate) in August, which benefited the risk assets.

The dollar, on the other hand, started the day at a strong high, but slowed the gains throughout the session, with investors reflecting the data from China while waiting for the next monetary policy decisions from global central banks.

As a result, the Ibovespa closed the day up 0.43%, at 118,219 points, while the dollar rose 0.25%, quoted at R$4.807.

Interest contracts maturing in January 2024 fell from 12.84% to 12.79%, while those for 2025 dropped from 10.89% to 10.79%.

In this scenario, the Ibovespa opened lower and even operated below 116,000 points at the day’s low, but started to register an increase, supported by the fall in the futures interest curves and by optimism in the American market, which also had a positive day.

The Brazilian stock exchange benefited mainly from increases in Renner (1.00%) and Itaú (1.73%), which were among the most traded in the session.

The banking sector, by the way, had a positive trading session with the start of the Desenrola Brasil program, which promotes debt renegotiation for customers of at least eight banks. In addition to Itaú, the shares of Bradesco (1.59%) and Banco do Brasil (0.88%) rose.

The Ibovespa was also supported by “small caps”, smaller companies more sensitive to falling interest rates. The index that brings together these companies rose 0.65% on Monday.

The biggest increases of the day were Raízen (3.68%), BTG (3.13%) and MRV (2.96%).

At the other end, the index came under pressure with the 1.16% drop in Vale shares, impacted by the decline in iron ore abroad after the release of data on the Chinese economy. IRB Brasil (3.15%), BRF (2.70%) and Weg (1.94%) also recorded losses.

The main stock indices in the United States rose with expectations about the release of quarterly corporate earnings from large companies in the country throughout the week, such as Tesla, Bank of America, Morgan Stanley and Netflix.

As a result, the S&P 500, the Dow Jones and the Nasdaq rose 0.39%, 0.22% and 0.93%, respectively, boosting the Ibovespa.

With Reuters