Understand what makes the dollar price rise or fall The dollar is trading down this Monday (22), showing a drop of 0.46% near 3:30 PM, quoted at R$ 5.1415. At the day's low, it reached R$ 5.1234.
Meanwhile, the Ibovespa, the main index of the Brazilian stock exchange, was trading up 1.29% at the same time, at 170,501 points. 🗒️ Have a story suggestion? Send it to g1 ▶️ Negotiations between the United States and Iran continue to stir the markets. Tensions rose again over the weekend after Tehran claimed that Israel violated the memorandum of understanding signed between Presidents Donald Trump and Masoud Pezeshkian by continuing attacks on Lebanon.
The American leader also renewed threats of new bombings against Iran. Despite the tensions, however, US and Iran representatives managed to make progress in talks in Switzerland, which helps keep oil prices under control. Near 3:30 PM, Brent crude, the international benchmark, fell 3.56% and was trading at $77.70.
Meanwhile, West Texas Intermediate (WTI), the main US benchmark, dropped 2.87% to $73.67. ▶️Also on the radar is the resignation of British Prime Minister Keir Starmer.
The prime minister had been facing pressure within his own party following crushing defeats in the local elections in May. He is expected to stay in office until a new leader is chosen. ▶️Also abroad, Colombia's elections remain in the crosshairs of investors.
Right-wing candidate Abelardo de la Espriella won yesterday's presidential runoff with 49.7% of the vote. He proposes a fiscal reform in the country and defends agreements with the US to combat organized crime. ▶️On this week's indicator agenda, highlights include new inflation data in Brazil and the US.
Purchasing Managers' Indexes (PMIs), which serve as an economic thermometer, are also expected to be released in various countries. The minutes of the Central Bank's (BC) latest interest rate meeting and Brazilian employment data are also in focus.
See below for more details of the day in the market. 💲Dollar a Week's accumulated: +2.04%; Month's accumulated: +2.44%; Year's accumulated: -5.89%. 📈Ibovespa Week's accumulated: -1.64%; Month's accumulated: -3.14%; Year's accumulated: +4.47%. US-Iran negotiations progress Hezbollah and Israel's ceasefire violations heightened tensions in the Middle East over the weekend. The halt in attacks was one of the points agreed upon in the memorandum of understanding signed by the US and Iran last week, and the new attacks raised concerns about the agreement.
Follow all developments. Amid the offensive, Iran even declared the closure of the Strait of Hormuz once again. Shortly after, however, US Vice President JD Vance arrived in Switzerland for the first round of negotiations with Iranian representatives. As an American diplomat told Axios, the talks with Iran focused on mechanisms to prevent an escalation of tensions in Lebanon and ensure compliance with the ceasefire.
Additionally, there was positive progress in efforts to ensure the Strait of Hormuz remains open to navigation. This Monday (22), Pakistani Prime Minister Shehbaz Sharif stated that the first meeting between Iran and the US was "successfully concluded" in Switzerland: "The discussions resulted in an agreement to establish a high-level committee for political oversight and the initiation of further technical negotiations". "We have made a lot of positive progress and laid a very solid foundation for a successful final agreement. Technical talks will continue in the coming days," JD Vance stated. The damages of war The war in the Middle East caused significant impacts on the global economy.
The disruption of oil flow through the Strait of Hormuz raised commodity prices, pressured fuel costs, and increased inflation concerns in several countries. As a consequence, consumers faced higher prices, while financial markets registered losses and the dollar strengthened amid higher risk aversion. With the end of the conflict, economists are now monitoring when economic activity and markets will begin to show signs of normalization.
g1 gathered the main effects of the war and the prospects for recovery. See in the report below: Global markets In the US, the three main Wall Street indices traded mixed this Monday, with investors more optimistic regarding negotiations with the Middle East. Near 3:30 PM, the Dow Jones rose 0.34%, while the S&P 500 fell 0.33% and the Nasdaq Composite dropped 1.06%. In Europe, major stock exchanges closed higher this Monday (22) as investors evaluated negotiations in the Middle East and remained attentive to Keir Starmer's resignation as UK Prime Minister.
The pan-European STOXX 600 closed up 0.6%. Among major indices, the UK's FTSE 100 rose 0.72%, while Germany's DAX advanced 0.62% and Spain's Ibex 35 gained 1.01%.
France's CAC-40 went against the trend and closed down 0.25%. In Asia, markets closed mixed, focusing on negotiation signals between the US and Iran and after the People's Bank of China (PBoC) kept interest rates unchanged for the 13th consecutive month, in line with market expectations. The CSI 300, which gathers the largest companies in Shanghai and Shenzhen, rose 2.4% in the session and reached its highest level since December 2021. Meanwhile, the Shanghai index, the SSEC, was up 1.8%. In Hong Kong, the Hang Seng index fell 0.7%, while Japan's Nikkei advanced 1.6%. *With information from the Reuters news agency. Dollar Karolina Grabowska/Pexels.
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