Dollar opens slightly lower with an eye on the Chinese economy

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The North American currency fell 0.09%, quoted at R$4.9618. The main stock index on the Brazilian stock exchange ended with an increase of 0.24%, at 129,036 points. Dollar banknotes bearfotos/Freepik The dollar opened slightly lower this Tuesday (20), in another day of weak economic agenda around the world, with investors reflecting the latest moves by the Chinese government to try to boost the second largest economy in the world. The market is also awaiting the release of the minutes of the last meeting of the Federal Reserve (Fed, the American central bank) and the corporate balance sheet of the technology company Nvidia, which will be released tomorrow. See below for a summary of the markets. Dollar At 9:15 am, the dollar fell 0.16%, quoted at R$4.9537. See more quotes. The previous day, the North American currency fell 0.09%, quoted at R$4.9618. With the result, it accumulated: drop of 0.09% in the week; gain of 0.50% in the month; increase of 2.25% in the year. Ibovespa Ibovespa starts operating at 10am. The day before, the index closed with an increase of 0.24%, at 129,036 points. With the result, it accumulated: increase of 0.24% in the week; increase of 1.00% in the month; decline of 3.84% 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? On another day of weak agenda in Brazil and the world, the market continues to keep an eye on the movements taking place in China. The Chinese central bank today reduced the five-year mortgage interest rate by 0.25 percentage points, to 3.95%. The cut is yet another attempt by the government to boost the country’s real estate sector. However, even with the drop, investors’ concerns about the future of the world’s second largest economy continue, with the expectation that the country will continue to struggle to boost its growth. In this context, iron ore (a commodity highly demanded in China, mainly by the real estate sector), fell to its lowest level in three months in this trading session, also driven by pessimistic prospects. According to analysts at the Commonwealth Bank of Australia, the bad climate for China’s real estate sector, which is responsible for around 35% of steel demand, is expected to continue throughout 2024, but less intensely than in 2023. Last Sunday (18), the Chinese central bank had already chosen to keep interest rates on one-year loans unchanged in the Asian giant, at 2.5% per year. Furthermore, Chinese Premier Li Qiang said that the country needs to take “pragmatic and energetic” action to increase investor confidence in the Chinese economy, which has been generating a series of concerns for showing signs of weakness. During the week, the market also awaits the release of the minutes of the latest Fed and ECB meetings. Both institutions kept their interest rates unchanged. The corporate balance sheet of Nvidia, an artificial intelligence company that soared almost 240% in one year, was also on the radar.

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