After going through a “circuit breaker” the day before. Bovespa operate high this Thursday. In the partial month, the index accumulates a drop of 35.78%.
This Thursday (19th) the B3, the main index of the stock exchange in Brazil, started to operate at an increase after having retreated earlier. At 4:30 pm, the Ibovespa rose 3.73%, to 69,390 points. At the very least, it scored 61,690 points and dropped more than 7%.
The climate of the global market continues in uncertainty about what is to come and several countries, even after a series of measures by central banks, including a new cut in the basic interest rate in Brazil, hold on with fear of a recession.
Last Wednesday (18), the Stock Exchange went through another circuit breaker. The deals closed down 10.35%, at 66,894 points. It was the lowest closing level since August 3, 2017 at 66,777 points. It was the sixth time in just eight sessions that the circuit breaker has been triggered since the coronavirus pandemic began.
The index accumulates a drop of 35.78% in the month. In the year, the drop is 42,16%.
Uncertainties about what's to come
This Thursday was another day of uncertainty and tension in global markets. Investors believe that not even the series of measures announced by several governments and central banks in an attempt to combat the impacts of the coronavirus will be enough to avoid a global recession.
Régis Chinchilla, an analyst at Terra Investimentos, believes that now what will really calm the tension in the markets will be the decrease in the number of people infected by the coronavirus and the discovery of a vaccine that solves it.
The Monetary Policy Committee (Copom) of the Central Bank reduced the basic interest rate in Brazil, this past Wednesday (18). The reduction was from 4.25% to 3.75%. For specialists, the Central Bank's decision was “weighted”, and that it is possible that the Selic will fall even more, since it is still difficult to predict how far the economic slowdown caused by the advance of the pandemic will go.
