After suffering its biggest drop since 1998 amid the coronavirus scenario, Ibovespa recovers and the index reached 14% while the dollar fell
This Friday (13), right after the big drop the previous day, where the stock market closed down 14.78%, at 72,582.53 points. And it activated the “circuit breaker” twice. The stock market was operating at a high of almost 2% while the dollar was falling. The Ibovespa, the main index of the Brazilian stock market, soared at its opening, rising more than 14%.
At 11:58 am 3.06% at 74,806 points. The commercial dollar fell 1.5% to R$ 4.7124 to buy and R$ 4.7141 to sell. The dollar futures for April fell 1.49%, to R$ 4.733.
At around 12:40 p.m., the stock market was up 1.73%, at 73,836.28 points. Abroad, the United States stock markets are up between 2.4% and 3%. The improvement comes after the main B3 index registered its worst fall since 1998.
In the context of the coronavirus pandemic, in addition to the number of infected people increasing, US President Donald Trump's decision to ban flights between Europe and the US, with the exception of the United Kingdom, is not pleasing investors. All of this is weighing on the markets, and in Brazil, there was news that Bolsonaro's government communications secretary, Fábio Fábio Wajngarten, has coronavirus. This case led President Jair Bolsonaro to take the test to diagnose the presence or absence of the virus.
Central Bank
The Central Bank of Brazil will today use a third tool to intervene in the dollar market by offering up to US$1.4 billion through auctions of lines — a sale that has a commitment to repurchase. This is the first time that the Central Bank has made a net offer of currency in this modality since December 17 and 18 of last year. The measure occurred shortly after a large injection of liquidity into the markets by the Federal Reserve, the central bank of the United States.
Interest Market
In the interest rate futures market, the DI for January 2022 fell 53 basis points to 5.37%, the DI for January 2023 fell 47 basis points to 6.36% and the DI for January 2025 fell 51 basis points to 7.27%.