The US currency fell and reached R$5.03 at the day’s low; the stock market hit 1.75% high at high
The week started with the commercial dollar down 0.12%, quoted at R$5.05. The Ibovespa, the main index of the B3 (São Paulo Stock Exchange) rose 1.22% to 108,232 points.
The US currency reached BRL 5.03 at the low of the day. The stock market hit a high of 1.75% high.
The stock market advanced for the 4th day in a row, accumulating a rise of 4.97% in the period. The enhancement of commodities in the international market pulled the index. type oil brent rose 2.41% to US$114.24 a barrel, and the WTI (West Texas Intermediate) advanced 3.36% to $114.20.
In the US, the index dow jones rose 0.08%, while the S&P 500 dropped 0.39%.
Investors reacted to weak economic activity data from China, which reported on Monday (May 16, 2022) a sharp drop in retail sales and industrial production in April. The strict “covid zero” health policy closed major cities, such as Beijing and Shanghai, and impacted the country’s economic activities.
The financial market also moved with the speeches of the director of Monetary Policy of the Central Bank, Bruno Serra Fernandes, in an event of the Goldman Sachs. According to him, the rise in the Selic rate should be felt in the second half of 2022.
The BC director signaled that the next meeting of the Copom (Monetary Policy Committee), in June, should end the cycle of monetary tightening.
The monetary authority’s preference is to keep the interest rate at a high level for longer, in order to reach the inflation target. Bruno Serra said that “not always” the task will be possible because of financial market speculation about the BC’s next steps.
“We did the work. [de aumento de juros] faster than our peers. We thought we could stop [a alta] in that meeting [realizada em maio]. The scenario got worse. We had to extend the cycle [de altas], give a sign of the likely extension of the cycle, but from now on I think time will tell”said Bruno Serra.
#Week #starts #dollar #stock #market