The Ibovespa, the main index of the Brazilian stock exchange, closed down 1.03%, to 82,173.21 points. Despite the drop on the day, the Stock Exchange accumulated a rise of 5.95% in the week. In the year, the Stock Exchange fell 28.94%.
Throughout the day, attention in Brazil turned to the decision of Minister Celso de Mello, of the Supreme Federal Court (STF), on the disclosure of the recording of a ministerial meeting. The minister authorized the disclosure in the late afternoon.
The dollar value released daily by the press, including the Twitter, refers to the commercial dollar. For those who are going to travel and need to buy currency at foreign exchange brokers, the value is much higher.
According to former Minister of Justice Sergio Moro, President Jair Bolsonaro asked ministers at the meeting to change the Federal Police Superintendence in Rio de Janeiro under the threat of firing him.
The day before, Bolsonaro said that it was not the case to make the complete content of the video public, which he believes would be a “constraint”.
Earlier, Minister Celso de Mello sent crime news related to the investigation into President Bolsonaro’s alleged interference with the Federal Police to the PGR (Attorney General’s Office). Among the measures requested are the search and seizure of the cell phone of the president and his son, councilor Carlos Bolsonaro, for expert examination.
On the other hand, according to Luciano Rostagno, chief strategist at Mizuho bank, “Bolsonaro’s meeting with the country’s authorities, including mayors, senators and governors, with a more conciliatory tone adopted by all parties, pleased the market yesterday and is helping the Real to end the week with significant gains “.
The week comes to an end with the threat of intensifying tensions between the United States and China after the Asian country acted to impose a new security law on Hong Kong.
“Today, fears of a worsening of geopolitical tensions impose caution in global markets,” wrote Ricardo Gomes da Silva Filho, of Correparti Corretora. “The fear is that such a decision (from China over Hong Kong) will again spur protests in the region and jeopardize the ‘Phase 1’ agreement between” the two largest economies in the world. ”
These tensions, plus news that China gave up an annual growth target for the first time, heightened concerns about the consequences of the covid-19 pandemic, also bringing down oil prices and broadening the search for safe assets like bonds of the North American treasury.
Following China’s decision, pro-democracy activists called for protests and U.S. President Donald Trump has promised to respond if the country tightens control over the former British colony.
* With Reuters