Internally, the market reacts to political noise and the unemployment rate at a record level; spread of Covid-19’s Delta variant raises global fear
The main indicators of financial market Brazil closed this Wednesday, 30, in the negative field with attention divided between the domestic political noise and the international bad mood due to the dissemination of the Delta variant of the new coronavirus. O dollar closed with an advance of 0.64%, at R$ 4.978. The exchange rate reached the maximum of R$ 5.032, while the minimum was R$ 4.953. Despite the negative day, the currency ended June with a drop of 4.78%, the third consecutive month with the appreciation of the real against the dollar. In the year, the currency adds a drop of 4.1%. O Ibovespa, a reference on the Brazilian Stock Exchange, closed with a retraction of 0.41%, at 126,801 points. The performance makes the main index of the B3 end the month practically stable, with a slight increase of 0.46%, while since the beginning of the year it has accumulated an increase of 6.54%.
In the domestic scenario, investors followed the unfolding of the denunciation of a bribe request from a Ministry of Health server for the purchase of vaccines against Covid-19. In a statement, the folder stated that it dismissed the logistics director Roberto Dias after the disclosure of the case. Also in Brasília, businessman Carlos Wizard testified to the Covid-19 Parliamentary Inquiry Commission (CPI). The executive is appointed as a member of a supposedly parallel cabinet set up to help the federal government during the new coronavirus pandemic. The market also analyzed the maintenance of the unemployment rate at a record level. Between the quarter of February and April this year, the index was 14.7%, totaling 14.8 million Brazilians without work. Central Bank data showed that public debt in May retreated to 84.5% of Gross Domestic Product (GDP), the third consecutive month of retraction.
On the international agenda, markets remain apprehensive about the spread of Delta variant of the new coronavirus in different regions of the world. The growth of the new strain, possibly more transmissible, raises fears for the return of social isolation measures and a slowdown in the recovery of the global economy. Variant outbreaks sent Sydney, Australia’s most populous city, into a new two-week lockdown. Countries in Europe, such as Portugal and the United Kingdom, are also studying changing the reopening schedule given the risk of a new wave of infections.