The dollar recorded an increase of 0.12%, quoted at R$5.52, this Friday (12/19). The slight increase indicates in practice the stability of the American currency against the real. Ibovespa, the main index of the Brazilian Stock Exchange (B3), was up 0.47%, at 158,668.14 points, at 5:05 p.m.
Electoral issues have once again shaken the foreign exchange and capital markets in Brazil. This time, economic agents reacted to the news published by Metropoles that the governor of São Paulo, Tarcísio de Freitas (Republicans), was trying to coordinate with the Supreme Federal Court (STF) the granting of house arrest to former president Jair Bolsonaro (PL). Today, Bolsonaro is detained in a cell of the Superintendence of the Federal Police (PF) in Brasilia.
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For the market, Tarcísio’s initiative could lead to possible support from the former president for the governor of São Paulo, during the 2026 presidential race. This, mainly, in a context where senator Flávio Bolsonaro (PL-RJ), named presidential candidate by his father, shows a weak performance in the polls.
In addition, notes Bruno Perri of Forum Investimentos, speculation has arisen in the market that research will show, next week, a possible weakening of the candidacy of President Luiz Inácio Lula da Silva (PT).
Interest in Japan
In the external scenario, investors followed a sharp decline in the Japanese yen, after the Bank of Japan (BoJ) raised the country’s interest rate to the highest level in 30 years. The weakening of the Japanese currency contributed to the strengthening of the dollar on the world market.
At 5 p.m., the DXY index, which compares the strength of the American currency to a basket of six strong currencies (euro, yen, pound sterling, Canadian dollar, Swedish crown and Swiss franc), rose 0.17%, to 98.62 points.
Bruno Shahini, investment specialist at Nomad, observes that the dollar has strengthened in the markets, mainly reflecting the consequences of the Bank of Japan’s decision to raise interest rates. “The move boosted Japanese bond yields and contaminated the global interest rate curve, including U.S. debt securities and Treasuries,” he says.
Risk appetite
Just like the Ibovespa in Brazil, the New York indices also rose this Friday, reflecting a greater appetite among investors for risky assets. At 4:30 p.m., the S&P advanced 0.90%; the Dow Jones, 0.60%; and the Nasdaq, which concentrates stocks in the technology segment, 1.20%.
According to Perri, the US market reacted positively to the prospect of a joint venture agreement between TikTok and Oracle. This possibility would have boosted the performance of the technology sector.
In Brazil, the largest Ibovespa stocks performed well during the trading session. Petrobras and Vale rose, at 4:40 p.m., by 0.34% and 0.64%, respectively. The shares of large banks also rose, with emphasis on Itaú which, at the same time, recorded an increase of 2.46%.
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