The Sao Paulo stock market falls 7.21% in the week due...

The Sao Paulo stock market falls 7.21% in the week due...
The Sao Paulo stock market falls 7.21% in the week due...

Sao Paulo, Oct 30 (EFE) .- The Sao Paulo stock market lost 7.21% in the weekly accumulated, weighed down by international pessimism before the advance of the new coronavirus pandemic in the United States and Europe, where they were adopted again rigid restrictions.

The Ibovespa index, the benchmark for the stock market, lost 2.72% this Friday and closed with 93,952 to end October with a monthly decline of 0.68%, according to preliminary data at the end of the session.

In the foreign exchange market, the US dollar depreciated this Friday by 0.49% and closed at 5.73 reais for buying and selling, after the increases in recent days that led the greenback to reach its highest value since mid-May in the country and forced the Central Bank to intervene.

Economic operators have renewed their fears about the Covid-19 crisis after the two largest economies of the European Union (EU), Germany and France, again imposed serious isolation measures to contain contagions in their countries.

These new closings, which have also occurred in Spain, threaten to wipe out the recovery that the world economy had begun to feel as of the third quarter and which could completely disappear in the last two months of the year.

In Brazil, where the coronavirus has so far left about 159,000 deaths and 5.5 million infected, the health crisis has begun to subside very slowly, but concern is growing about the country’s serious fiscal crisis, aggravated by the pandemic.

The Central Bank reported this Friday that Brazil’s gross public debt reached a record figure of 6.534 trillion reais (1.146 trillion dollars) in September, which is equivalent to more than 90% of the country’s Gross Domestic Product (GDP).

On the other hand, the nominal fiscal deficit was between January and September 2020 at the equivalent of 16.7% of GDP, compared to 6.09% in the same period in 2019.

Public spending has skyrocketed to finance the subsidies that the Government is distributing until the end of the year to alleviate the economic effects of COVID-19 among the unemployed, informal workers and the neediest families.

In this context, with tax collection also low, investors fear that the country’s public accounts will become even more unbalanced and nervously observe the paralysis in Congress of the government’s agenda of fiscal adjustment and liberal reforms, including an administrative one.

All in all, the Sao Paulo stock market lost 2,629 units to its accumulated score only today.

The turnover reached 30,448 million reais (about 5,310 million dollars) in a total of 4,402,149 financial operations.

In a session where practically all the stocks closed in the red, the Brazilian subsidiary of the Spanish multinational Telefónica, the reinsurer IRB Brasil and the railway logistics company Rumo managed to close with gains by raising their shares by 0.93%, by 0.49 % and 0.05%, respectively.

The greatest losses were recorded by the electronic commerce firm B2W Digital (-8.97%), the textile company Hering (-6.80%) and the retail trade manager Via Varejo (-5.97%), whose papers They were also the most traded of the session together with those of the mining giant Vale (-2.37%). EFE

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