See stock exchange and dollar quotes this Monday – 03/13/2023 – Market

The dollar opened higher on Monday (13), in the week of release of inflation data in Brazil and the United States. The stock market is still reacting to the bankruptcy of the US bank Silicon Valley Bank, which brought down all the main exchanges in the world last Friday (10).

At 9:29 am (Brasília time), the spot dollar advanced 0.80%, at R$ 5.2500 on sale.

On B3, at 9:29 am (Brasília time), the first contract dollar futures contract rose 0.70%, to R$ 5.2700.

The spot dollar closed the last session quoted at R$5.2081, up 1.32%.

Investors await the results of the IBC-BR index, which measures economic activity, this Monday.

The stock market closed last Friday (10th) with losses equivalent to all gains for the rest of the week, at the second worst level of the year. The main factor for the fall was a global risk aversion after the crisis at Silicon Valley Bank, the largest financial institution to fail in the US since 2008.

The dollar closed higher – Federal Reserve report indicating falling wages in the US also had an effect on the currency.

In the interest rate futures market, rates rose in the short term and fell in the long term, influenced by the IPCA announcement, by 0.84%, higher than expected. In contracts for January 2024, the rate increases from 13.04% per annum from the closing date of this Thursday (9) to 13.16%; due in January 2025, from 12.23% to 12.38%. At maturity in January 2027, however, the rate dropped from 12.67% to 12.65%.

In the United States, Silicon Valley Bank, a financial institution valued at US$ 40 billion (R$ 207.3 billion at current exchange rates), announced a capitalization on Thursday, shortly after reporting a loss of US$ 2 billion (R$ 10.4 bi) in the accounts. The movement devalued the company’s shares by 60% and made the banking sector lose US$ 80 billion (R$ 414.5 billion) in value this Friday.

This Friday, regulators took control of the bank in the biggest bankruptcy recorded by a financial institution in the US since 2008. The financial institution controlled US$ 220 billion in assets, mostly in venture capital funds and technology companies.

According to Bloomberg, Wall Street investors sought safety and pulled $500 million from investment funds and accumulated $18.1 billion in cash and $8.2 billion in government bonds.

The main US stock exchanges closed sharply: Dow Jones fell 1.07%; S&P 500, 1.45%, and Nasdaq, 1.76%. The stock market was also down in England, Germany, France, Japan, China and other countries in Asia and Latin America.

The sixth also had disclosures of the balance sheet of three large retail companies: Magazine Luiza, Via and Arezzo. The three companies opened the day with strong losses, but Magalu managed to revert to gains during the day.

Hapvida, after closing the fifth with a low of 33.56% in its shares, rose 26.8% on Friday with the sale of assets.

Also influencing the financial market are the data released this Friday morning by the IBGE for an increase of 0.84% ​​in the monthly comparison of the IPCA, the main inflation index in the country. The result was above the projections of major stock exchange operators, according to Raone Costa, Chief Economist at Alphatree Capital.

Market interest rates increased for 2024 and 2025. This is because core inflation, with the main items in the basket, continued at 0.7%, compared to January, a still high number.

Accumulated inflation should reach a level below 4% in June this year, with core measures on a disinflation path, albeit gradual, according to a report by Itaú Unibanco.

Also on Friday, there was also the release of the US central bank’s report on job creation in the US, called “payroll”. Stock traders have been waiting for a drop in wages and hours worked. “Salary is basically what controls, one of the main factors of American inflation,” said Victor Candido, chief economist at RPS Capital.

Although the United States created 311,000 jobs, against projections of 225,000, data on wages and hours worked declined.

Inflation in Brazil and labor market conditions in the US had an influence on the rise in the dollar recorded that day.

With Reuters