Follow the dollar exchange rate today (24) – 10/24/2023 – Market

The Brazilian Stock Exchange followed international indices and opened higher this Tuesday (24), benefiting from the fall in yields on US Treasury bonds, the so-called “treasuries”.

The dollar was oscillating between losses and gains, favored by the environment of risk aversion abroad with the Israel-Hamas war, but pressured precisely by the relief in treasuries. Investors are awaiting data on the American economy, especially inflation figures, to align bets on a possible new interest rate hike in the USA.

At 11:07 am, the Ibovespa rose 0.98%, to 113,899 points, while the dollar fell 0.17%, quoted at R$5.007.

On Monday (23), the Brazilian stock exchange recorded a drop of 0.32% and closed at 112,784 points, driven by a decline of more than 6% in Petrobras shares.

The oil company’s shares, in turn, collapsed after the announcement of a proposed change in the company’s bylaws, with the creation of a capital remuneration reserve and changes to its executive appointment policy.

The price of oil didn’t help either: a barrel of Brent, the global benchmark for the product, fell 2.5%, to US$89.83, with investors’ relief over the conflict between Hamas and Israel.

Oil prices fell more than 2% on Monday as diplomatic efforts in the Middle East intensified in an attempt to contain the conflict between Israel and Hamas, easing investor concerns about possible supply disruptions.

As a result, Petrobras ended the day with a drop of 6.34% in its preferred shares, which were the most traded of the session, and 5.78% in common shares.

Shares of Vale, the largest company on the Brazilian Stock Exchange, also fell and pulled the Ibovespa down, following iron ore prices abroad.

In exchange, the dollar fell 0.29% and closed at R$5.016, following the fall in the yields on American bonds. The so-called “treasuries” fell from 4.91% to 4.84%, after having surpassed the 5% level in the morning.

The fall in treasuries usually weighs against the dollar as it reduces the attractiveness of American fixed income, considered one of the safest assets in the world, causing investors to reallocate their resources to riskier markets.

In the US, major stock indexes had mixed directions: the Nasdaq rose 0.27%, while the S&P 500 fell 0.17%.

With Reuters