INSUBCONTINENT EXCLUSIVE:
The Brazilian financial market experienced significant turbulence on Friday, December 6, 2024
resist alterations to the Continuous Cash Benefit program for older people and disabled citizens
This uncertainty contributed to a risk-averse atmosphere in the market.Meanwhile, the US dollar reached a new record high against the
It closed at R$6.0708, marking a 1.02% increase
resulted in a slight 0.22% gain for the Ibovespa
However, the dollar strengthened by 1.16% against the real over the same period
(Photo Internet reproduction)Interest rate expectations shifted dramatically
The market now prices in a 59% chance of a 100 basis point hike in the Selic rate next week
This is a significant change from previous expectations of a smaller increase.Global Financial MarketsIndividual stocks saw notable
CVC, a travel company, experienced an 11% drop
This decline reflected concerns about higher interest rates and a stronger dollar impacting consumer spending on travel.Banco do Brasil
shares also fell after rating downgrades from major financial institutions
Vale and Petrobras, two heavyweight stocks, declined by over 1% each, influenced by commodity price movements.On the positive side, MRV saw
a 10% surge following announcements about its US subsidiary
Embraer and WEG benefited from the stronger dollar, as it potentially boosted their export competitiveness.In the US, new employment data
reinforced expectations of monetary easing by the Federal Reserve
The S-P 500 and Nasdaq reached new all-time highs, completing three consecutive weeks of gains.In short, these market movements underscore
the interconnected nature of global finance
They highlight how domestic policy decisions, international economic trends, and investor sentiment can rapidly impact financial markets.
