Follow the dollar rate and the Stock Exchange this Tuesday – 05/09/2023 – Market

The dollar showed instability amid volatile negotiations this Tuesday (9) after disappointing data from China, while investors awaited a reading of inflation from the United States and reflected the minutes of the last monetary policy meeting of the Central Bank of Brazil. The Brazilian Stock Exchange, in turn, operated on a high.

At 12:00 am, the Ibovespa rose 0.76%, to 106,849.88 points. The dollar fell 0.17%, at R$5.004, but showed slight gains throughout the day.

Abroad, imports from China contracted sharply in April while exports increased at a slower pace, reinforcing signs of weak domestic demand despite the end of Covid restrictions.

According to economists at Bradesco, the worst result in the Chinese trade balance put pressure on the main Asian exchanges and contributed to the downward trend in oil prices. On Wall Street, an impasse over the US debt ceiling was also putting pressure on business.

As a result, American indices operated in decline. The Dow Jones had lost 0.07%, while the S&P 500 and Nasdaq were down 0.29% and 0.43% respectively.

In Brazil, the minutes of the Copom (Monetary Policy Committee), published this Tuesday, showed that the BC assesses that the presentation of the fiscal framework by the government reduced the uncertainty associated with extreme scenarios of public debt growth.

“I see minutes consistent with a Selic remaining stable for a long time. This looks like the BC’s flight plan. Certainly no sign of interest rate cuts for the next Copom meeting,” said Caio Megale, chief economist at XP, in a note. .

The basic interest rate is currently at 13.75% per annum, a high level that has supported the real by making it attractive for investment in “carry trade” strategies. These consist of taking a loan in a low-interest country and investing that money in a more profitable market.