Ibovespa falls 11.5% in June, the worst in a month since March 2020Entertainment 

Ibovespa falls 11.5% in June, the worst in a month since March 2020

The dollar increased by 10.03% in the same period, but accumulated still low overall for the year

REUTERS / Luisa GonzalezScholarship
Ibovespa has accumulated low levels in 2022

O Ibovespamain index i Bursa and Sao Paulos, had a drop of 1.08% this Thursday, 30, and closed the day at 98,542 points. As a result, the total decline for the month was 11.5%, the worst since 29.9% in March 2020, when Brazil was hit hard by the Covid-19 pandemic. Annually, the index fell by 5.99%, despite the good performance until the end of March. Once again, the situation was triggered by fears of a global recession with rising interest rates and the fiscal issue in Brazil, while the so-called PEC Kamikaze, costing over $ 40 billion earmarked for social benefits, is Congress – spending will went beyond the spending limit. The Central Bank also acknowledged this Thursday that inflation will be above the target for the year.

On the other hand, dollar increased by 0.77% per day and closed the trading session with 5.23 R $. In June, the appreciation of the US currency against the real was 10.03%, the highest since March 2020, when growth was 15.93%. However, in the year, the dollar retreated by 6.14% against the Brazilian currency. The recent assessment is also a reflection of domestic issues in Brazil and others abroad: in the midst of a crisis and possible slowdown, investors are looking for safer assets and usually receive money from Brazil, a developing country. Perception of more government spending also helps to convey a sense of fiscal mismanagement.

Related posts

Leave a Comment