See dollar quote today – 04/25/2023 – Market

The dollar rose this Tuesday (25), in line with the advance of the US currency abroad and as investors monitor the hearing of the president of the Central Bank, Roberto Campos Neto, in a Senate committee.

At 9:18 am (Brasília time), the spot commercial dollar advanced 0.49%, to R$ 5.0649 in the sale. On B3, the dollar futures contract for the first month rose 0.56% to R$5.0685.

In addition to continuing to pay attention to the political scenario in Brazil, especially the progress of the new fiscal framework in Congress, investors expect inflation measured by the IPCA-15 of April in Brazil, next Wednesday (26) and consumer inflation in the States States, on Friday (28).

The first reading of the US GDP (Gross Domestic Product) in the first quarter and the balance sheets of the American technology giants should also move the market this week. But everything happens from this Wednesday (25).

The Stock Exchange closed lower on Monday (24), mainly affected by the shares of Vale and steelmakers. Companies reacted to the fall in iron ore, and to the news about fears of a new wave of Covid-19 in the Asian country. In the exchange rate, the dollar followed, in relation to the real, the devaluation trend seen worldwide.

The Ibovespa ended the day down 0.40%, at 103,946 points. The spot commercial dollar closed down 0.40%, at R$5.040.

In futures markets, interest rates also dropped. In contracts for January 2025, rates dropped from 11.97% at the close of last Thursday (20) to 11.87%. Upon maturity in January 2027, interest increased from 11.94% to 11.83%. In January 2029, the rate dropped from 12.32% to 12.23%.

According to information from the Bloomberg agency, the weekend in China was marked by increased fears of a new wave of Covid-19 cases in the country.

According to reports, the word “Covid” was one of the most popular searches on the Weibo platform, one of China’s most popular social networks. The subject “second wave of Covid” had more than 95 million searches this Monday alone.

All this because the China Center for Disease Control and Prevention mentioned, at the end of last week, a new sub-variant of the virus.

Zhang Wenhong, one of the leading Chinese experts on Covid-19, said that the most vulnerable groups should receive a booster dose of the disease vaccine, and that the population should start stocking up on medicines as a way to prepare for new variants.

In addition, iron ore has been falling in recent days, leaving the level of US$ 120 a ton and approaching US$ 115 in the Chinese markets. At the end of March, the ton was at US$ 127.

Vale’s common shares closed down 3.73%. Other sector stocks also fell. CSN Mineração’s ordinary shares stand out, down 5.15%. CSN’s common stock dropped 3.37%, and Gerdau’s preferred stock closed down 3.01%. The preferential class A of Usiminas fell less, 0.83%, since the company presented better numbers than expected in the first quarter.

Petrobras followed the opposite path, and avoided a worse performance of the Ibovespa. Common shares rose 1.54% and preferred shares advanced nearly 2%. Oil is up more than 1% on Monday.

In Brazil, the market remains attentive to the political scenario, focusing mainly on the progress of the new fiscal framework in Congress.

Demanded by parliamentarians and pressured by the lack of a solid base, President Lula’s government seeks to accelerate the transfer of additional funds to each deputy as a way of improving the climate in Congress and approving measures of interest to the Planalto Palace.

Negotiations around the release of this type of funding take place mainly in the Chamber and are now also under the likely creation of a CPI to investigate the January 8 coup attacks —the government seeks to have a majority of deputies and senators on the commission, in addition to to appoint chairman and rapporteur.

Finance Minister Fernando Haddad said this Monday (24) that no country criminalizes authorities for failing to meet the fiscal target, in defense of a device proposed in the new fiscal framework to replace the spending ceiling.

In the United States, indices fluctuated a lot during the day, and closed with no defined direction. According to analysts, indicators have shown an economic slowdown above expectations, and this week will be marked by the release of balance sheets from large technology companies, with the prospect of worsening numbers. In addition, investors are waiting for the Fed meeting (Federal Reserve, the US central bank) on interest rates, which takes place next week.

This weekend, the situation of the retail chain Bed, Bath & Beyond, which filed for bankruptcy protection, was reported.

The Dow Jones and S&P 500 indices closed up 0.20% and 0.09%, respectively. The Nasdaq fell 0.29%. The DXY index, which measures the performance of the dollar against other global currencies, was down 0.45% at 5:45 pm (Brasília time).

With Reuters