After going through a “circuit breaker” the previous day, Bovespa is trading higher this Thursday. In the partial month, the index has accumulated a drop of 35.78%.
On Thursday (19) B3, the main index of the Brazilian stock exchange, began to operate higher shortly after having retreated earlier. At 4:30 pm, Ibovespa rose 3.73%, to 69,390 points. At its lowest point, it marked 61,690 points and fell more than 7%.
The global market climate remains uncertain about what is to come and several countries, even after a series of measures by central banks, including a new cut in the basic interest rate in Brazil, are holding back for fear of a recession.
Last Wednesday (18), the Stock Exchange went through another circuit breaker. Business closed down 10.35%, at 66,894 points. It was the lowest closing level since August 3, 2017, at 66,777 points. It was the sixth time in just eight sessions that the circuit breaker was triggered, since the coronavirus pandemic began.
The index has accumulated a drop of 35.78% in the month. In the year, the drop is 42.16%.
Uncertainties about what lies ahead
This Thursday was another day of uncertainty and tension in global markets. Investors believe that not even the series of measures announced by various governments and banks, central to the attempt to combat the impacts of the coronavirus, will be enough to avoid a global recession.
Régis Chinchila, an analyst at Terra Investimentos, believes that now what will really calm the tension in the markets will be the decrease in the number of people infected by the coronavirus and the discovery of a vaccine that can solve the problem.
The Central Bank's Monetary Policy Committee (Copom) reduced the basic interest rate in Brazil last Wednesday (18). The reduction was from 4.25% to 3.75%. For experts, the Central Bank's decision was "considered", and it is possible that the Selic rate will fall even further, as it is still difficult to predict how far the economic slowdown caused by the advance of the pandemic will go.