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Saturday, November 26, 2022

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Dollar recovers yesterday’s loss and Ibovespa future expands its fall this Thursday (29)

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Dollar rises and future Ibovespa falls at the opening of this Thursday (Image: REUTERS/Amanda Perobelli)

O dollar opened trading this Thursday (29) up 0.53%, to R$ 5.4032.

The currency recovers the drop of 0.52% on Wednesday (28), when it was sold at R$ 5.3487.

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This morning, at 9:02 am, the future Ibovespa operated down 0.57%, at 108,070 points.

The day before, the futures index closed trading in the red, down 0.40%, at 108,685 points.

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Ibovespa today: Relief rally is short-lived abroad and elections stop business here

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O Ibovespa did not follow the relief rally of the international markets and ended up walking away. Even so, the Brazilian stock market managed to interrupt the sequence of falls. But the question that circulated on Wednesday (28) among the investors it was: why did it go up there and not here?

The first impression is that the elections are really slowing down local business. After all, the proximity of the first round of the presidential race and the possibility of victory for PT Luiz Inácio Lula da Silva already on Sunday (2) increase caution in the home market.

However, this defensive posture of investors is not only due to uncertainty about whether a premature definition of the election in favor of the ex-president is good or bad for the market. The fact is that the Brazilian assets perform more positively than global peers year to date.

In other words, the appreciation of the stock exchange and the real in local currency and in dollars in 2022 makes any new upward movement without much consistency difficult. On the other hand, it makes it easier for profit taking to be more prominent, making it vulnerable to headwinds.

Therefore, while the indices in New York are lagging, accumulating a fall of around 20% since January each, here both the Ibovespa and the Brazilian exchange have “fat to burn”. Hence why it is easier to track losses than gains.

*With Olivia Bulla


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O Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.

Source: Moneytimes

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