Risk of collapse of China’s Evergrande and market effects return to pressure investor mood
The main indicators of financial market Brazilian companies operate in the negative field this Friday, the 24th, with the disclosure that the preview of inflation hit the 10% mark in September. On the international stage, attention is turned to China and the economic impacts with the possible collapse of the Evergrande construction company. Around 11am, the dollar registered an advance of 0.5%, quoted at R$ 5.335. The exchange rate reached the maximum of R$5.353, while the minimum did not exceed R$5.315. The currency ended the day with an advance of 0.1%, at R$ 5.310. O Ibovespa, the benchmark of the B3, registered a drop of 0.88%, to 113,055 points. The trading session this Thursday, 23, closed with a high of 1.6%, at 114,064 points – the third day in a row with positive variation.
O Broad National Consumer Price Index 15 (IPCA-15), considering the preview of the inflation official, registered an increase of 0.25 percentage point in the month of September, reaching 1.14%. The index released by Brazilian Institute of Geography and Statistics (IBGE), was the highest since February 2016, when the rate was 1.42%, and the highest for a month of September since 1994. In the year, the index accumulates a high of 7.02%, while the sum of the last 12 months was 10.05%. Once again, the preview of inflation was driven by higher prices for gasoline and electricity. Still on the domestic agenda, the special committee of the Chamber approved, the day before, the Proposal for Amendment to the Constitution (PEC) for the administrative reform. The text goes to the Plenary, where it must go through two rounds of voting before being sent to the Senate. On the international agenda, the possible default of the Chinese giant Evergrande and its impacts on the economy of the country and the globe once again pressured the mood of the markets. According to local media, Beijing has warned the country’s rulers to prepare for the company’s downfall, indicating that it will not interfere in the situation.