© Reuters. The Sao Paulo Stock Exchange falls 1.82% due to the economic fragility of Brazil
Sao Paulo, Nov 16 (.) .- The Sao Paulo Stock Exchange fell 1.82% on Tuesday, weighed down by the fragility of the Brazilian economy, which is recovering slower than expected and also suffers from high unemployment and inflation runaway.
The benchmark stock index, closed with 104,403 points and eliminated all the accumulated gains it achieved last week, when it advanced 1.44%.
The São Paulo ring was back on Tuesday after the national holiday on Monday, but it did so in a bad mood, affected by the bad macroeconomic data released this Monday.
On the one hand, economic activity in Brazil fell 0.14% in the third quarter of the year compared to the previous three months, according to the Central Bank.
And on the other, analysts consulted by the issuing body once again worsened the growth forecast of the South American country from 4.93% to 4.88% and increased their forecasts for inflation to 9.77%.
In addition, financial agents are still pending the parliamentary process of the controversial measures of the Government of Jair Bolsonaro to make his commitments to fiscal responsibility more flexible and increase social spending in 2022, the year in which he will seek his re-election.
All of this, together with an unemployment rate of around 14%, shows the weakness of the largest Latin American economy, which this year is experiencing a recovery after collapsing 4.1% in 2020 as a result of the coronavirus pandemic.
In the foreign exchange market, the US dollar appreciated 0.75% and closed at 5.49 reais for buying and selling, at the Brazilian commercial exchange rate.
All in all, the Sao Paulo stock market today subtracted 1,930 units from its accumulated score.
The volume traded reached 27,825 million reais (about 5,070 million dollars), in a total of 4,783,749 financial operations, according to the preliminary results at the end of the session.
The biggest losses were recorded by the department stores Magazine Luiza (-12.6%), the hosting portal Locaweb (-11.8%) and the retail network Lojas Americanas (-9.3%).
On the other side, the Suzano paper company rose sharply (3.5%), as well as the common and preferred shares of the Brazilian state oil company Petrobras (NYSE :), which rose 1.5% and 1.0%, respectively.
Petrobras preferred securities were also the most traded of the day together with the ordinary ones of Magazine Luiza.