US President said China panicked and ‘played wrong’ to retaliate; Treasury Secretary’s speech, Scott Bessent, throughout the afternoon contributed to increasing risk aversion
After closing Thursday (3) at the lowest value in almost six months, he Ogged on Friday (4), and again exceeded R $ 5.80, following the wave of appreciation of the US currency abroad, especially compared to emerging currency and with commodity exporting countries. The retaliation of the tariff, with the imposition of additional 34% tariffs on American products, has agreed the fears that the trade war wishes in global recession. Oil prices melted, with more than 6% drop on Friday and two -digit losses in the month.
Trump said China panicked and “played wrong” as he retaliated. Treasury Secretary Speech, Scott Bessent, throughout the afternoon they contributed to increasing risk aversion and throwing the dollar even higher and in the domestic market. In preaching US reindustrialization, Bessent said Trump broke the China model with the imposition of tariffs.
With a maximum of R $ 5,8455 at the last time of business, the cash dollar ended the session up 3.68%, quoted at R $ 5,8350 – higher closing since March 10 (R $ 5,8521). It was the biggest daily advance since the 4.14% gain on November 10, 2022. The currency accumulates gains of 2.27% in the first four trading sessions of April. In the year, retreat 5.59%.
Dollar behavior thermometer compared to a basket of six strong currencies, the DXY index rose about 1%, with late afternoon, at 103,182 points. Among the other currency, a negative highlight for the Australian dollar, with losses of more than 4%, followed by a New Zealand dollar and the Colombian and Mexican pesos.
In the early afternoon, the president of the Federal Reserve (Fed, the US Central Bank), Jerome Powell, threw water in the boil of bets on an impending and accentuated court of interest in the US. Powell said it is “very early to say what is the appropriate posture” to respond to the increase in uncertainties. “Progress towards the 2% inflation target has slowed, but Payroll data show a solid economy,” Powell said at an event on Friday.
Published in the morning, the Employment Report (Payroll) showed the creation of 228,000 US jobs in March. There was a bassist reduction, however, from February numbers (from 151 thousand to 117 thousand) and from January (from 125 thousand to 111 thousand). Shortly before Powell’s speech, Trump attacked the Fed president in a post on the Thuth Social network. “Cut interest rates, Jerome, and stop doing politics,” wrote the US president, stressing that he considers this a “perfect moment” for relaxation of monetary policy.
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China’s retaliation to the United States – of identical 34% in importing imports – stressed the perception that global economic stagnation is on its way to the Trump government’s protectionist tide. Thus, oil plummeted for the second day, the dollar rose 3.68%at R $ 5.83, and had its highest drop since December 18, down on Friday, 4, 2.96%, at 127,256.00 points, backwards at mid-March, with very reinforced spin, to R $ 31.8 billion, this Friday.
In the week, the 3.52% loss was the highest for B3 index since the week of December 12 to 16, 2022. In the aggregate of the first four sessions of April, 2.31% drops – in the year, rises 5.80%. If, on Thursday, the performance of banks and actions associated with the domestic cycle was enough to keep Ibovespa near zero to zero -in a day that had already been global correction -on Friday, the dissemination of losses was inevitable.
As on Thursday, highlight in the negative field for Vale (on -3.99%) and Petrobras (on -4.19%, pn -4.03%), with the continuation of oil correction. The Brent and WTI barrels, which on Thursday had ceded more than 6%, closed this Friday at a low of 6.50% (Brent) and 7.41% (WTI) in London and New York at the lowest levels since 2021.
In Asia, the ore, on Thursday in discreet loss, this Friday gave 2.35% in Singapore, below $ 100 per ton – in Dalian, there was no business because of holiday and, in Qingdao, the drop was 1.1%. During the session in London, Brent Oil, a global reference, broke the US $ 65 support, points out Ian Toro, Melver’s variable income expert. In the morning, the publication of Payroll, the official report on the generation of job openings in the US in March, contributed to accentuate the tension of the day, also highlights the analyst.
The exchange rate also reacted, contrary to the Ibovespa, with the dollar in sight very pressured early in the session, up 3.68%, to R $ 5,8350 in closing. In New York, the main stock rates extended the losses of the previous day, falling on Friday at 5%, and almost 6% for S&P 500-in the week, highlighting Nasdaq, down 10% at the break.
In Brazil, the market, which had already designed Selic Terminal below 15% per year, returns to work with the interest rate around this level, with major chances of a new 0.50 percentage point. Despite the attention that the market often gives official readings about the US labor market, the subject of the day was the retaliation of China – in the eye for an eye, tooth tooth.
In the large banks, the losses reached 3.31% (Santander Unit) at the closing. At Ibovespa’s winning tip, only Carrefour Brasil (+10.77%), Minerva (+0.15%) and Klabin (+0.05%) – the only three of the 87 theoretical wallet shares advanced in the session. On the opposite side, angry (-12.92%), we go (-9.92%) and petroreconcavo (-8.60%). From minimum to maximum of the day, Ibovespa oscillated maximum at the opening to 131,139.05 points at least 126,465.55, lower intradia level since 14 March. The closing level was the smallest since the last day 13
By the end of this week marked by the announcement of US tariffs, the financial market is quite pessimistic about the performance of actions in the very short time, on the Broadcast Bolsa Bolsa Thermometer. Among participants, 50% believe that Ibovespa will have losses next week, while 33.33% predict advance and 16.67%, stability. In the previous edition, 37.50% expected fall and another 37.50%, high, with 25% estimating neutral variation.
*With information from Estadão Content
Posted by Carolina Ferreira
