Dollar operates with volatility and Ibovespa rises, with the market attentive to signs of the American economy

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The previous day, the North American currency rose 1.71%, quoted at R$5.1530, the highest level in more than six months. The Brazilian stock exchange closed down 1.42%, at 113,419 points. The Ibovespa was influenced by the fall of several shares – the shares of Magazine Luiza, Grupo Soma and the construction company MRV fell by more than 5% throughout the day adobe stock The dollar operates with volatility this Wednesday (4), fluctuating between highs and lows. Investors continue to cautiously review economic data from the United States, which provide more signs about the future of interest rates and economic activity in the country. The Ibovespa also operates volatile, following the same movement of risk aversion that dominates markets globally, but driven by a rise in bank shares. See the day in the markets below. Dollar At 12:25 pm, the US currency fell 0.21%, quoted at R$5.1417. See more quotes. The previous day, the dollar closed up 1.71%, quoted at R$5.1530, the highest level in six months. As a result, the currency began to accumulate: increases of 2.51% in the week and month; drop of 2.37% in the year. Ibovespa Also at 12:25 pm, Ibovespa rose 0.26%, to 113,719 points. At the same time, Bradesco shares rose 2.59%, as did other financial institutions. The day before, the index closed down 1.42%, at 113,419 points. As a result, the index began to accumulate: drops of 2.70% in the week and month; increase of 3.36% 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? What’s moving the markets? Although the market started to be slightly more positive today, in a natural movement to correct the latest falls, investors around the world continue to pay attention to signs from the American economy, which generate concern on a global level and are once again weighing on businesses. Yesterday, the US 10-year Treasuries reached 4.7% – the highest level since October 2007. These are the public bonds of the largest economy in the world and, therefore, are considered the reference in security. Thus, when the profitability of these bonds is high, there is a migration of investments there, taking money from risky assets, such as stock markets and currencies in other countries, especially emerging ones, such as Brazil. And the expectation is, precisely, that interest rates will remain high for some time. Currently, Federal Reserve (Fed, the American central bank) rates are between 5.25% and 5.50% per year and the institution has already signaled that it should keep them high for a few months, and may even promote new increases. This perspective gained strength yesterday, after the Jolts report, on job openings, recorded an unexpected increase of 690 thousand jobs in August, totaling 9.610 million vacancies, against an expectation of 8.8 million from the financial market. Signs of improvement in the labor market in the world’s largest economy may also indicate greater difficulty in controlling inflation by the Fed — as more employment also means more money in the hands of the population and, consequently, more pressure on prices. On the other hand, high interest rates for a long time have as main consequence the stagnation of the economy, since high rates reduce consumption levels, because they make the processes of taking credit and financing more expensive. Therefore, the consensus of a large part of the market is that, soon, the USA may go through a period of economic recession, which could generate negative impacts throughout the world.

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