See dollar quote today after purchase of Credit Suisse – 03/20/2023 – Market

The spot dollar fluctuated on Monday (20), the day after the announcement of the purchase of Credit Suisse by UBS. The markets start the week reacting to the merger that creates a global giant that will be responsible for the management of US$ 5 trillion (R$ 26.3 trillion) in investor resources.

Investors are also looking forward to the so-called “Super Wednesday”. Next Wednesday (22), decisions on interest rates in the United States and Brazil will be released. The global banking crisis can influence the decisions of the Fed (Federal Reserve, the US central bank) and even the Central Bank.

This Monday, in addition to the Focus bulletin, the BC is publishing its economic activity index, the IBC-Br for January, the first measurement made during the Luiz Inácio Lula da Silva (PT) government.

At 9:24 am (Brasília time), the spot dollar retreated 0.03%, to R$ 5.2700 on sale.

The Stock Exchange closed low and the dollar high this Friday (17), closely following the performance of stock indices abroad. Investors are beginning to anticipate a scenario of possible recession in the global economy, due to the ongoing banking crisis in the United States and Europe.

The Ibovespa closed down 1.40% to 101,981 points. The index accumulated a drop of 1.50% in the week, and renewed the low of 2023 at the close of this Friday. It is the worst level for the Exchange reference index since December 14, 2022. The spot commercial dollar rose 0.61%, to R$ 5.270. In the week, the high was 1.20%.

In the interest market, rates showed declines, with the growing bet that the Central Bank will start lowering the Selic rate in the first half.

In contracts maturing in January 2024, the rate dropped from 13.03% at the close of this Thursday (16) to 12.97%. It is the first time since November 2022 that the shortest rate has been below 13%. For January 2025, interest rates dropped from 12.18% to 12.07%. In January 2027 contracts, the rate fell from 12.59% to 12.48%.

This Friday, the Credit Suisse stock had another very volatile day, and closed down 8%. In the week, the role of the Swiss bank lost 25% of its value, even with the high of 19% last Thursday (16).

In the United States, SVB (Silicon Valley Bank) filed for bankruptcy to seek interested parties for its assets, after being closed by American regulators.

Regulators named the FDIC, the US agency that guarantees bank deposits, as trustee of the SVB, in the biggest collapse since Washington Mutual failed during the 2008 financial crisis.

US President Joe Biden on Friday called on Congress to give regulators greater power over the banking sector, including imposing higher fines, recovering funds and banning employees of failed banks, according to a statement. with a statement released by the White House.

“No one is above the law and strengthening accountability is an important factor in preventing future mismanagement,” Biden said in a statement.

In New York, the Dow Jones index closed this Friday at a low of 1.19%. The S&P 500 shed 1.10%, and the Nasdaq was down 0.74%.

In Europe, the Euro Stoxx 600 index closed down 1.21%. Stock exchanges in London, Paris and Frankfurt ended the day with drops of more than 1%.

In Brazil, the unemployment rate stood at 8.4% in the quarter through January, the first month of the Luiz Inácio Lula da Silva (PT) government, according to data released this Friday by the IBGE (Brazilian Institute of Geography and Statistics).

The rate of 8.4% is the lowest for the interval up to January since 2015, when it was at 6.9%. Analysts, however, see reflections of the slowdown in economic activity on part of the survey indicators.

“The result came a little worse than expected, but when we look at the general picture of the labor market, it remains practically unchanged, with signs of loss of breath, but maintaining a very robust opening”, says João Savignon, head of macroeconomics at Kinitro Capital.

This unemployment data helps to hold interest rates, as it reinforces the perspective that the Central Bank may start lowering the basic rate in the first half of this year, according to analysts.

With Reuters