Dollar opens lower, with optimism abroad driven by technology companies

[ad_1]

The previous day, the North American currency rose 0.13%, quoted at R$4.9384. The main stock index on the Brazilian stock exchange ended up 0.09%, at 130,032 points. Technology companies generate optimism in this trading session. Freepik The dollar opened lower this Thursday (22), following a more positive sentiment that dominates international markets, benefiting risk assets. Optimism is driven by the good performance of technology giants. Yesterday, chip and semiconductor manufacturer Nvidia, which became one of investors’ darlings and became the fourth largest company in the world, announced that its profit was US$12.3 billion in the fourth quarter of 2023, above expectations and representing an increase of 769% compared to the same period of the previous year. Furthermore, the minutes of the last meeting of the Federal Reserve (Fed, the American central bank) and the new edition of the Focus Bulletin, from the Central Bank of Brazil (BC), released today, are also on the radar. See below for a summary of the markets. Dollar At 9:10 am, the dollar fell 0.32%, quoted at R$4.9225. See more quotes. The previous day, the North American currency rose 0.13%, quoted at R$4.9384. With the result, it accumulated: drop of 0.56% in the week; increase of 0.02% in the month; increase of 1.77% in the year. Ibovespa Ibovespa starts operating at 10am. The day before, the index closed with an increase of 0.09%, at 130,032 points. With the result, it accumulated: increase of 1.01% in the week; increase of 1.78% in the month; decline of 3.10% in the year. READ ALSO CASH OR CARD? What is the best way to take dollars when traveling? DOLLAR: When is the best time to buy the currency? Understand what makes the dollar rise or fall What is moving the markets? What encourages the markets this trading session are the results released by Nvidia the day before. The technology company’s revenue soared 265% in the last quarter compared to the fourth quarter of 2022, reaching US$22 billion, exceeding all expectations. And the boom in the company’s numbers can be explained by the furor over artificial intelligence. In a statement, Nvidia president Jensen Huang says that “the new generation of computing and generative AI is a turning point. Demand is exploding around the world from companies, industries and nations.” In this context, investors are more optimistic and have a greater appetite for risky assets, which benefits stock markets around the world, including Brazil, and helps the dollar lose some strength. The minutes of the last Fed meeting, released yesterday, also remain on the radar. The document indicated that most of the Fed’s voting members were concerned, at the last monetary policy meeting, about the risks of cutting the US basic interest rate too soon. Furthermore, the institution is also uncertain about how long loan costs should remain at the current level, between 5.25% and 5.50% per year — still at the highest level since 2001. In Brazil, the BC released the latest edition of the Focus Bulletin, a report that brings together projections by financial market economists for the country’s main economic indicators. Economists raised this year’s Gross Domestic Product (GDP) growth projection from 1.60% to 1.68%. They also reduced expectations for inflation, from 3.82% to 3.81%.

[ad_2]

Source link