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©Reuters. The Sao Paulo stock market collapses 3.35% after Lula’s speech
Sao Paulo, Nov 10 (EFE).- The Sao Paulo stock market plummeted 3.35% this Thursday and its index stood at 109,775 points after the uncertainty generated by the president-elect, Luiz Inácio Lula da Silva, about the fiscal policy of the next government.
In the foreign exchange market, the dollar soared 4.10% and was sold at 5,393 reais for purchase and 5,394 reais for sale at the commercial exchange rate.
Investors today reacted badly to Lula’s speech, who criticized the rules that limit public spending in the country and the reform of the pension system approved during the government of President Jair Bolsonaro.
“Why are people forced to suffer to guarantee such fiscal responsibility?” Lula questioned during a speech in which he indicated that he will increase spending during his government.
At its low of the day, the indicator fell 4.46% and in the end it fell below the symbolic bar of 110,000 units.
The market also did not digest well the appointment of Guido Mantega, Lula’s former minister and his successor, Dilma Rousseff, as one of the coordinators of the transition team.
The inflation data also weighed on the stock index.
Despite the relaxation of inflation in year-on-year terms (6.47%), in October prices rose 0.59% compared to the previous month, interrupting a three-month downward streak, according to data released by the government.
In the midst of this scenario, the shares of the state-owned companies closed with widespread losses, including the preferred ones of the oil company Petrobras (NYSE:), which fell by X and were the most traded by investors.
The losses, however, were led by the preferred shares of the airline Azul (-17.83%).
During the day, 55,191 million reais (about 10,231 million dollars) were traded, a higher than usual daily volume due to the expiration of stock option contracts and the product of almost 7.5 million financial transactions.
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