Dollar rises after swings in the US; see quotation – 07/21/2023 – Market

The dollar opened higher on Friday (21), following the movement seen abroad amid worsening global risk sentiment after disappointing balance sheets in the United States and in the face of expectations for the Fed’s monetary policy decision (Federal Reserve, US BC) next week.

With an empty domestic and international agenda, bets on possible interest rate increases this year continue to influence business, while investors await new catalysts that justify sales or purchases of shares.

At 9:04 am (Brasília time), the spot dollar advanced 0.23%, to R$ 4.8126 in the sale. On B3, at 9:04 am (Brasília time), the first contract dollar futures contract rose 0.24%, to R$ 4.8190.

On Thursday (20), the Brazilian Stock Exchange recorded a rise of 0.34% and closed at 117,961 points this Thursday (20), supported by Vale and Petrobras, on a positive day for commodities abroad.

The dollar also rose and ended the day quoted at R$4.802, with an appreciation of 0.33%, after the release of data on the US labor market.

The main aid for the Brazilian Stock Exchange was the increase in commodities abroad, which supported the shares of Vale and Petrobras, the largest companies on the Ibovespa.

In addition, a technical movement related to the expiration of stock options on the Exchange also helped the index.

Options are contracts that give the holder the right to sell or buy an asset at a specific date in the future for a predetermined amount. The expiration of options, that is, the deadline for exercising this right, always occurs on the third Friday of the month, which impacts the price of assets on the trading session of the day.

In this scenario, the Stock Exchange recovered and closed above 118 thousand points. Slight gains in Vale (0.22%) and Petrobras (0.10%) shares supported the Ibovespa, in addition to increases in Renner (0.11%), Itaú (1.64%) and Weg (0.13%), which complete the session’s most traded list.

On the negative side, falls by Locaweb (4.10%), Gol (3.39%) and Eneva (2.31%) pressured the index, on a negative day for “small caps”, smaller companies more connected to the domestic economy.

In futures markets, the yield curve for January 2024 dropped slightly, going from 12.76% to 12.74%, while longer contracts increased.

U.S. stock indices, on the other hand, are falling, driven by shares of Netflix and Tesla, which released worse-than-expected financial data on Wednesday. The automaker’s shares fell 9.70% earlier this afternoon, while those of the streaming giant retreated 8.30%.

As a result, the S&P 500 and Nasdaq fell 0.68% and 2.05%, respectively, while the Dow Jones rose 0.47%, up 6.1% for Johnson & Johnson after the company released its balance sheet and an increase in its annual profit forecast.

With Reuters