Stock exchange accumulates sixth consecutive drop and reaches the lowest closing since January

On Tuesday, November 3, the main B3 index closed with a decline of 1.42%, marking 165,528.92 points, and accumulated six falls in a row. According to InfoMoney, this is the lowest close since January 19, a level the index has not seen in months. At the beginning of October, recalls the same source, the Stock Exchange was still operating above 209 thousand points.

The trading session was full of widespread pressure, with weight concentrated on a few stocks. According to InfoMoney, the losses were driven by Petrobras (PETR3 and PETR4), Vale (VALE3) and the banking sector, while WEG (WEGE3), Embraer (EMBJ3) and Santander (SANB11) reduced the fall. The day's range was 164,446.53 points at low to 168,005.46 at high. The WINZ26 mini-index, which expires in December, dropped 1.44% and was quoted at 168,035 points.

The background, in InfoMoney's reading, is domestic. Among the factors cited are fiscal doubts, the debate about an accelerated fall in the Selic rate and the lack of definition of the economic team. The worsening mood coincided with the period after the second round of Brazilian elections, and future interest rates rose along with the dollar.

In terms of foreign exchange, Exame reports that the commercial dollar advanced 0.79%, quoted at R$5.487, the highest level of the year. According to the same publication, the lack of clarity about the economic direction of the upcoming Lula administration also contributed to pushing up prices. For those who follow interest rates and currency, the combination of a more expensive dollar and rising future interest rates is the point that draws the most attention.

Abroad, according to InfoMoney, Wall Street had no defined direction, attentive to the mid-term legislative vote in the United States, and oil fell. In Brazil, the week's agenda has a central milestone: the Copom's decision on Wednesday, November 4th, according to Exame.

In technical reading, Gilberto Coelho, known as Giba, analyst at XP Investimentos, sees room for a temporary recovery in Yduqs (YDUQ3) and Klabin (KLBN11). He cites BOVA11 and SMAL11 as technical references, also according to InfoMoney.

What changes for the investor

For those who invest and operate, the message is that domestic risk has once again weighed on prices. With doubts about the direction of public accounts and the conduct of monetary policy, the Copom's decision and the signals from the economic team tend to gain increased attention, because they define the cost of money and the dollar. In the line that this newspaper defends, fiscal credibility is what supports lower interest rates in the long term. This report does not provide a purchase or sale recommendation and does not project price levels.

Automatically translated from Portuguese.