Dollar rises and Ibovespa falls, amid fears about war in the Middle East; oil rises 2%

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The previous day, the North American currency recorded a decline of 0.03%, quoted at R$5.0353. B3’s main stock index fell 0.54%, to 115,908 points. Markets operate with volatility this Wednesday. Pixabay The dollar operates higher this Wednesday (18), amid growing tensions in the Middle East, with the war between Israel and Hamas, which has reached its 12th day. In addition to concerns about the conflict, which has driven up the price of oil, investors around the world are also awaiting the release of the Beige Book in the United States, a report from the Federal Reserve (Fed, the American central bank) that provides an overview of how the country’s economy is doing. Ibovespa, the main stock index on the Brazilian stock exchange, B3, is experiencing a sharp drop, despite the appreciation of oil exporting companies. See the day in the markets below. Dollar At 10:40 am, the dollar rose 0.23%, quoted at R$5.0467. See more quotes. The day before, the North American currency closed the day down 0.03%, sold at R$5.0353, after rising sharply in the morning. As a result, the currency began to accumulate: a drop of 1.05% in the week; increase of 0.17% in the month; decline of 4.60% in the year. Ibovespa At 10:40 am, Ibovespa fell 0.71%, to 115,090 points. At the same time, shares in Petrobras, PetroRio and 3R Petroleum all rose more than 1%, following the rise in oil prices. However, among all other sectors of the stock market, the fall was widespread, reflecting the greater aversion to risks taking over the markets. The previous day, the index closed down 0.67%, at 115,908 points. With the result, it started to accumulate: increase of 0.13% in the week; drop of 0.56% in the month; gains of 5.63% 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? What continues to weigh heavily on business is the war between Israel and Hamas. The biggest concern, from a financial point of view, according to analysts, is that other countries in the region — which is the most important oil exporter in the world — will become involved in the conflict. Brent crude, the global benchmark contract, hit $93 per barrel on Wednesday, up more than 2%, as the risk of escalating conflict in the Middle East threatened to disrupt oil supplies in the region, after Iran asked the imposition of an oil embargo on Israel. Yesterday, after an attack on a hospital in the south of the Gaza Strip that left hundreds dead, including several children, authorities in Palestine, Jordan and Egypt canceled a meeting with American President Joe Biden, who arrived in the Middle East to try to negotiate solutions diplomacy for war. Other Arab countries also condemned the attack. Now, there is a war of narratives over who was responsible for the bombing. While Arab authorities attribute it to Israel, the country claims that the attack was carried out by Islamic Jihad. In this challenging context, diplomatic negotiations are experiencing great difficulty, which ends up reflecting on the price of oil. In addition to the war, in the external scenario, investors await the release of the Beige Book, which may bring more signs about the direction of interest rates in the United States, and new speeches from Fed directors. In Brazil, the economic agenda is weaker, with highlighting only new figures from retail trade. Retail sales fell 0.2% in August, according to the Brazilian Institute of Geography and Statistics. However, in expanded retail trade, which includes vehicles, motorcycles, parts and pieces, construction materials and wholesale specialized in food, beverages and tobacco products, sales volume fell 1.3% in August. According to Maykon Douglas, research analyst at Highpar, expanded retail has shown more volatile behavior, especially among automobiles, which were impacted by government measures to offer discounts on new vehicles. On the other hand, the expert highlights that hypermarket and supermarket sales have shown resilient growth in recent months, “in the wake of food deflation, which increases purchasing power”. “In short, leaving aside the surprises at the margin (especially in services, which fell sharply in August), the data corroborate the economic slowdown from now on towards the end of the year, with a balance of supply and demand more favorable to more basic items to the detriment of durable goods. In this sense, retail continues to perform poorly and is likely to remain so in the coming months”, he comments.

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