After the election result, the stock market falls 13.88% and the dollar rises 8.21%; Sérgio All advises renegotiating debts
According to Times Brasil, businesspeople should renegotiate debts before seeking new loans and map their exposure to interest, exchange rates and costs for 2027.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM TIMES BRASIL · 2 MIN
The Brazilian Stock Exchange recorded the biggest daily drop since 2020, with a drop of 13.88% in a single session. According to Times Brasil, the movement came along with a rise of 8.21% in the dollar in one day, which reached close to R$5.38 on Thursday, and with a rise in future interest rates.
The vehicle points to the electoral result as the trigger for this set of movements. For those who manage a company, the central point is that the combination of a falling stock market, a more expensive exchange rate and rising future interest rates changes the cost of any new debt.
According to Times Brasil, the rise in future interest rates makes financing more expensive for companies and consumers. The same volatility can increase the cost of inputs, freight and credit, which puts pressure on the margins of small and medium-sized companies.
In this scenario, Sérgio All, presented by Times Brasil as the publication's Notable, states that businesspeople should renegotiate debts before seeking new loans. He recommends that entrepreneurs map their exposure to economic variables and review their financial planning for 2027, without making hasty decisions.
For Sérgio All, the order of priorities matters: first organizing what already exists, then deciding on new loans. With higher interest rates, those who try to borrow money without first adjusting their liabilities tend to pay more for the same credit.
What changes for the investor
For investors, the message is that companies' credit risk must be read together with the interest and exchange rate scenario. Companies with more expensive debt, dollar-sensitive costs or narrow margins tend to feel volatility more, and this can show up in their results and in the market mood. It is worth monitoring the level of debt, dependence on inputs and freight and interest sensitivity before drawing conclusions. This report does not provide a purchase or sale recommendation or price projections.
Automatically translated from Portuguese.
