Follow the dollar exchange rate today – 04/26/2023 – Market

The dollar opened in decline this Wednesday (25), after the release of the IPCA-15 by the IBGE (Brazilian Institute of Geography and Statistics). The inflation index measured between March 16th and April 15th slowed down to 0.57%.

At 9:05 am (Brasília time), the spot dollar retreated 0.31%, to R$ 5.0482 in the sale. On B3, at 9:05 am (Brasília time), the first contract dollar futures contract fell 0.31%, to R$ 5.0495.

The market remains attentive to the situation of the American economy, reacting mainly to the results of the technology giants in the country. Alphabet, parent company of Google, and Microsoft released their first-quarter results on Tuesday night (25).

The Stock Exchange closed low and the dollar high this Tuesday (25), following the international trend. First Republic Bank’s result for the first quarter of 2023, with a drop in deposits greater than expected by analysts. The prospect that the US economy is getting closer to a recession is also weighing on Brazilian assets.

The Ibovespa closed the day down 0.70%, to 103,220 points. The spot commercial dollar ended with an increase of 0.47%, at R$ 5.064.

In the interest market, rates tend to fall. In contracts for January 2025, the rate dropped from 11.88% at the close of this Monday (24) to 11.80%. For January 2027, interest rates dropped from 11.86% to 11.73%. In contracts for January 2029, interest rates dropped from 12.26% to 12.14%.

In New York, shares of First Republic Bank fell nearly 50%, and reached an all-time low. The bank reported withdrawing more than $100 billion in deposits in the first quarter. The shares of the sector’s majors in the United States also retreated, with emphasis on Goldman Sachs and JPMorgan, with falls of 4.50% and 3%, respectively.

In addition to the numbers, what sparked the alarm for investors was the news from the Bloomberg agency that the First Republic may sell some of its assets as part of a rescue plan, to avoid a crash.

Another major stock falling on Tuesday is Swiss bank UBS. Shares traded in New York fell 4.65%.

UBS has set aside more capital to close its positions in bad credit mortgages in the United States This cut the bank’s first-quarter profit by half as it prepares for the “difficult” task of absorbing rival Credit Suisse .

UBS posted net income of $1 billion in the first quarter, while the market had expected earnings of $1.7 billion.

Thus, stock indices in New York closed with the worst daily performance in two months. The Dow Jones fell 1.02%. The S&P 500 closed down 1.58%. The Nasdaq index fell 1.98%.

If in the United States banks are down, in Brazil the situation is different. The shares of the financial giants showed moderate increases, after the results of Santander Brasil released this Tuesday morning.

The bank recorded a net profit of BRL 2.14 billion in the first quarter of 2023, which represents a drop of 46.6% compared to the same period last year, according to a balance sheet released this Tuesday (25).

The result was in line with the expectations of analysts, who projected a profit of R$ 2.1 billion in the period. Compared to the fourth quarter of 2022, there was an increase of 26.7%. The bank’s Unit closed up 1.25%.

The international scenario affects the stock exchange and the exchange rate also through exporting companies, especially Vale and steel companies. This Tuesday, the shares of these companies continued the downward movement seen the day before.

Vale’s common stock fell 2.55%. The common shares of CSN (-2.91%) and CSN Mineração (-2.94%) also fell. Gerdau’s preferred shares retreated 3.50%, as the company has a stronger presence in the United States than its other local competitors. Usiminas’ class A preferred shares fell 1.26%.

In Brazil, the indicator that drew the most attention of investors this Tuesday morning was tax collection in March.

Government revenue from taxes was BRL 171.056 billion in March, according to the Federal Revenue, a drop of 0.42% compared to the same month of the previous year in data adjusted for inflation.

According to the historical series adjusted to prices from March of this year, it was the first real monthly drop in revenue since January 2021.

In the first three months of 2023, collection reached the value of R$ 581.795 billion, with an increase adjusted by the IPCA (Extended Consumer Price Index) of 0.72%. According to Revenue, it was the best performance for the quarter since 2000.

Investors are also attentive to the participation of BC (Central Bank) President Roberto Campos Neto in a public hearing in the Senate to discuss interest rates.

Campos Neto stated that the fight against inflation is the best social instrument that exists and denied that Brazil is sinking into recession.

To the parliamentarians, the head of the autarchy defended the inflation targeting regime and the importance of the Central Bank’s autonomy, explained the mechanics of decision-making by the Copom (Monetary Policy Committee) and the influence of inflation expectations on the calibration of the interest rate. fees.

The BC president also said that the country’s sustainable growth, with inflation under control, does not depend on “magic” or a “silver bullet”, but on discipline in public accounts.