The dollar had the highest daily rise in six months, and the stock market had the biggest drop since November last year on a day of nervousness in the financial market.

The real depreciated more than the currencies of the main emerging countries six days before the second round of the presidential elections.

The commercial dollar closed this Monday (24) sold at R$ 5.303, with a high of R$ 0.155 (+3.01%). The price opened at R$ 5.21 and operated in high throughout the session, until closing at the maximum of the day.
With today’s performance, the US currency has accumulated a 1.7% drop in October. In 2022, the retreat reaches 4.9%.

The stock market also had a turbulent day. The Ibovespa index, from B3, closed at 116,013 points, down 3.27%. It was the biggest daily low since November 26, 2021.

The index was pulled down by Petrobras (PETR4) and Banco do Brasil (BBAS3), which are among the most traded papers on the exchange.

The common shares of Petrobras fell by 9.89%. The preferred shares (with priority in dividend distribution) dropped 9.2%.

Two factors contributed to the fall in the stock market. The first was the granting of a third term for Chinese President Xi Jinping.

Although China reported 3.9% growth in the third quarter, above forecasts, there are fears that the nationalistic policy and lockdowns to contain the covid-19 pandemic will put pressure on the planet’s second largest economy in the medium and long term.

The second factor was the proximity of the second round of presidential elections. The proximity of elections usually causes volatility in assets in the days before the vote.