See stock exchange and dollar quotes today – 03/21/2023 – Market

The dollar opens in decline this Tuesday (21), a day with a more emptied economic agenda, but with investors still attentive to news about banks, mainly in the United States and Europe.

In addition, the market should continue calibrating expectations for the meetings of the Fed (Federal Reserve, the American central bank) and the Brazilian Central Bank to define the interest rates of the two countries, scheduled for this Wednesday (22).

At 9:02 am (Brasília time), the spot dollar retreated 0.39%, to R$ 5.2223 in the sale.

On B3, at 9:02 am (Brasília time), the first contract dollar futures contract fell 0.33%, to R$ 5.2350.

The Stock Exchange closed lower on this Monday (20) and renewed the minimum closing price for 2023, with investors paying more attention to local economic news. Uncertainties about the disclosure and content of the new fiscal rules by the government create greater tension in the market.

The dollar also falls, following the global trend, after the merger between UBS and Credit Suisse, and in anticipation of the interest rate decision in the United States, next Wednesday (22).

The Ibovespa ended the day down 1.04%, to 100,922 points, the worst level since July 27, 2022. The spot commercial dollar fell 0.53%, to R$5.242. The DXY index, which measures the performance of the dollar against other global currencies, fell 0.38% at the same time as the Brazilian market closed.

Due to the lack of definitions about the new fiscal framework, the interest market closed with slight increases, waiting for the decision of the Central Bank, also next Wednesday.

Contracts maturing in 2024 rose from 12.96% per annum at the close of last Friday (17) to 13.01%. For January 2025, interest rates increased from 12.06% to 12.11%. Upon expiry in January 2027, the rate closed stable at 12.47%.

President Luiz Inácio Lula da Silva (PT) asked the Minister of Finance, Fernando Haddad, to expand conversations with the political world and with economists, in addition to making new calculations on the proposed new fiscal rule, which will replace the spending.

The orientation was given during a meeting on Friday (17th), when Haddad presented the text to Lula. Ministers Simone Tebet (Planning and Budget), Rui Costa (Casa Civil) and Esther Dweck (Management and Innovation in Public Services) participated in the meeting, as well as vice president Geraldo Alckmin (PSB), minister of Industry and Commerce.

The president said this Monday, at an event about the resumption of the “More Doctors” program, that investments and social advances cannot be considered expenses.

The new fiscal rule must combine the public debt curve, primary surplus and a spending control mechanism, said this Monday (20th) vice-president Geraldo Alckmin (PSB).

According to him, however, President Luiz Inácio Lula da Silva (PT) has not yet given the final word on the proposal.

Another concern that persists in the market is inflation. The Focus bulletin, from the Central Bank, shows that economists continue to see the Selic at the current level of 13.75% both in this week’s meeting and in May, with the rate closing this year at 12.75%. For 2024, the projection for interest at 10.0% also follows.

Among the shares, the highlight was the drop of more than 7% in JBS common shares. The Batista brothers, who control the holding company that is the largest shareholder in the animal protein producer, will be part of the entourage that will accompany President Luiz Inácio Lula da Silva to China. According to analysts, the market is always attentive to the risks involved in bringing companies closer to the government.

Abroad, European stock markets closed higher, and in New York, the main stock indices also rose. The purchase of Credit Suisse by UBS was seen with some skepticism by the market at the beginning of the day, but the trend reversed as the regulators of the global financial system gave signs that they will continue to act to ensure the liquidity of banks.

In coordination with central banks elsewhere, the Fed has offered daily currency swaps to ensure that banks in Canada, the UK, Japan, Switzerland and the eurozone have the dollars they need to operate.

Another important event, much awaited by investors, is the Fed meeting to decide on US interest rates.

According to the Bloomberg agency, investors project that the cycle of high interest rates is at an end, and are even working with the possibility of cutting rates by the end of the year.

In New York, the Dow Jones index closed up 1.20%. The S&P 500 advanced 0.89%, and the Nasdaq gained 0.39%.

In Europe, the Euro Stoxx 600 index closed up 0.98%. In London, the FTSE 100 was up 0.93%. The CAC 40, from Paris, closed with an advance of 1.27%.

With Reuters