The São Paulo stock exchange fell 4,25% today and its main index, Ibovespa, closed at 95.368 points, pressured by the new restrictions adopted in Europe to contain the second wave of the covid-19 pandemic.
The São Paulo stock exchange thus registered its fourth consecutive drop, while the US dollar continues to rise and today appreciated 1,31%, closing its price at 5,75 reais (0,85 euro cents) for buying and selling.
The US currency reached 5,79 reais during the day, the highest value since mid-May, which forced the Central Bank of Brazil to intervene and inject more than one billion dollars (more than 850 million euros) into the market exchange rate.
The São Paulo stock exchange followed in the wake of the other international markets, which saw the sessions dyed red due to the uncertainty surrounding the consequences and the magnitude of the second wave of the new coronavirus pandemic.
The two largest economies in the European Union (EU), France and Germany, today announced new measures of social distance, including the closure of bars and restaurants and the shutdown of other non-essential activities.
Investors are watching with concern the drift of the pandemic and fear that the process of economic recovery will not be as fast as they believed.
To the fear of the second wave of covid-19 in Europe, there is the uncertainty due to the fiscal slippage in Brazil.
Economic agents believe that the reform agenda, including the administrative one, and the Government's fiscal adjustment are not advancing in Congress, something they consider essential to rebalance the country's already weakened public accounts.
The nominal public deficit reached, in the annual accumulated until August, the equivalent to 16,7% of the Brazilian Gross Domestic Product (GDP), in comparison with the 5,89% reached in the same period of 2019, while the gross debt soared to 88,8% of GDP.
In total, the São Paulo stock exchange lost 4.236 units in its accumulated score.
Turnover reached 29.339 million reais (about 4,34 million euros), for a total of 3.975.643 financial transactions, according to preliminary data at the end of the session.
Virtually no stock market value ended the day in a positive light and among the biggest losses was the aviation sector, with falls of 9,58% and 9,03% in the shares of the airlines Azul and Gol, respectively.
The most traded securities of the session were the ordinary shares of the trading administrator Via Varejo (-7,36%) and the preferred shares of the state oil company Petrobras (-6,09%) and Bradesco bank (-5,66%).