It was the fourth consecutive trading floor of the American currency; Ibovespa extends high from the day before, with the back of a milder rhetoric of Trump regarding the rates against China and the Fed
After playing the level R $ 5.65 in the morning, it greatly reduced the pace of fall throughout the afternoon, in line with the behavior of the American currency abroad, and ended the session on Wednesday (24), down 0.16%, quoted at R $ 5,7190. It was the fourth consecutive trading trading track of the dollar, which already has 1.46% devaluation a week.
Business in the local exchange market reflected the improvement of the external appetite for risk after Donald Trump last night denying the intention to dismiss Federal Reserve President Jerome Powell, and wave with a reduction in tariffs to Chinese products in an apparent attempt to seek a commercial agreement with the Asian giant.
Part of Real’s breathtaking loss throughout the afternoon was amid the rate of 2 -year Treasuries and new DXY index maxims, which measures the performance of the dollar compared to a basket of six strong currencies. Operators also claim that the retreat of more than 2% of oil prices also weighed on emerging currency.
After Trump said last night that the rates to Chinese products were very high, this morning circulated in the morning, attributed to White House sources that the US President would be willing to reduce import rates over China from 145% to a range between 50% and 65%.
In the early afternoon US Treasury Secretary Scott Bessent refuted the idea that Trump proposed unilaterally removing tariffs over China. The US President said he intends to “make a fair trade agreement” with the Chinese, although he repeated that both China and the European Union “are taking advantage of the US.” China’s Ministry of Commerce gave signs that it is open to discussions, but stressed that it will not negotiate an agreement under threats from the US government.
Real has performed the best performance among Latin American emerging currencies, which may reflect both technical issues of the currency market and the highest level of the Brazilian interest rate, which discourages the loading of dollar purchased positions and stimulates Carry Trade operations when risk appetite improves.
During a seminar lecture promoted by JPMorgan in Washington, Central Bank Monetary Policy Director Nilton David said today that monetary policy is now “the most contractionist of recent times,” with the 300-base highs. The director’s speech was interpreted by analysts as a sign that the current monetary tightening cycle is close to the end.
Stock exchange
High extends from the day before and closes at 132,000 points for the first time since March 27, with the back of a milder rhetoric of Trump, both regarding the tariffs against China and about Federal Reserve President Jerome Powell. The rally was no longer expressive because of the fall of more than 2% of future oil contracts, which weigh on oil roles like Petrobras.
With a financial turnover of R $ 24.2 billion, Ibovespa closed up 1.34%at 132,216.07 points. This is the highest closing level since March 27, when the B3 reference closed at 133,148.98 points.
Trump said yesterday that 145% tariffs about China are “very high.” The Republican pointed out that the tariff level “won’t be zero”, but stressed that the tendency is that it falls “a lot”. Sources heard by Dow Jones indicate that the Trump government considers reduced tariffs on China to something between 50% and 65%.
Setting of the US markets on Monday (when it was a holiday of Tiradentes in Brazil), the friction between Trump and Powell also seem to have lost strength. The US president said he “has no intention” of dismissing the Fed president.
At the positive tip, JBS (+6.38%) benefits from the advancement in the double listing process via BDRs on B3 and also in NYSE. Among the Blue Chips, large banks advanced in Block, from Santander Brazil Unit (+0.52%) until the ordinary action of Bradesco (+3.30%), while valid – which discloses balance of the first quarter of 2025 tomorrow – advanced 1.19%.
Petrobras fell 1.13% (PN) and 0.73% (ON), penalized by the retreat of 2% of future oil contracts, after Reuters reveals that several countries in the organization of oil exports and allies (OPEC+) have been pressure to accelerate production resumption from June.
*With information from Estadão Content
Posted by Carolina Ferreira
