The commercial dollar rose this afternoon and the Ibovespa, the main index of the Brazilian stock exchange, rose slightly, advancing 0.91%.
This Thursday, at around 3:20 pm, the commercial dollar and the Brazilian stock exchange were rising. The US currency appreciated by 0.4% and was sold at R$ 5.282. Yesterday (1), it reached R$ 5.261 on sale, setting a new closing record. The Ibovespa also grew this afternoon, advancing 0.91% to 71,609.31 points. Yesterday, it had fallen 2.81% to 70,966.70 points.
In March, the Ibovespa accumulated a loss of approximately 30%.
Oil and unemployment in the US
Today, after US President Donald Trump made a statement about his expectation that Russia and Saudi Arabia will soon reach an agreement to end their dispute over the oil market, oil prices rose by about 10%. “There was a significant increase in oil prices, which is providing some support for the currency (real),” Luciano Rostagno, chief strategist at Banco Mizuho, told Reuters news agency.
On the other hand, “new unemployment claims in the US help to maintain caution,” said Rostagno. “The data came in well above consensus, much worse than expected. This suggests a much greater economic impact than imagined on the US economy.”
Last week, the number of Americans filing for unemployment benefits hit a record 6.65 million, according to the U.S. Labor Department. Economists polled by Reuters had forecast claims would reach 3.5 million.
Measures to combat the pandemic in Brazil
The Brazilian government's economic measures to combat the coronavirus pandemic were on investors' radar. Yesterday, the government announced a job preservation program that guarantees partial compensation for those who have had their wages and working hours reduced. With the payment of compensation to workers, or the suspension of their employment contracts for up to 60 days.
Also yesterday, the National Monetary Council, in an extraordinary session, authorized several measures to alleviate the consequences of the expansion of the pandemic. In this session, the Central Bank will offer up to 10,000 traditional foreign exchange swap contracts maturing in October of this year and January of 2021, to roll over existing contracts.