Most of the Brazilian Company ADR falls on the day of losses in the United States

Dow Jones Brazil Titans 20 ADR (BR20) Index closed 0.42%at 16,244.56 points in the US on Monday (21), while ETF EWZ withdrew 0.12%, quoted to $ 25.19. The day was at B3 due to changing Easter holidays, but in the US receipts of shares from Brazilian companies are normally traded.

Brazilian roles followed the US bags, which had a bad day today and closed with losses above 2%, following new statements from President Donald Trump who criticized the Federal Reserve (Fed, US Central Bank), Jerome Powell.

In his social network, Trump called Powell called a “loser”, he called “Mr. Too Late” to the president of the monetary authority and asked for the expectation of the FOMC interest rate cuts.

The S&P 500 lost 2.36%and ended at 5,157.81 points, while the Nasdaq composite fell 2.50%to 15,878.68 points. Dow Jones Industrial Ageragg retreated 2.47%to 38,159.19.

Bruno Shahini, an investment expert at Nomad, commented that today’s session was characterized by a strong sense of risk aversion. In addition to the case of the most important shares in the United States, a new discharge was observed in income for US state titles and weakened the dollar against developed coins, where the DXY index reached the smallest of the past 15 months.

As has happened in the latest “Risk-Off” sections in the United States, gold shot a new record, which exceeded $ 3,400 by Jaguar, while the Swiss Franco-overwarted Porto Seguro-registered an increase of over 1% against the dollar.

“The market responds to increased Trump government policy uncertainty at the beginning of the semester. Today, concerns are particularly concentrated in Federal Reserve’s independence following strong statements from President Trump who criticized the US central bank’s current interest and rumors for a possible dismissal by Fed President Jerome Powell,” said Shahini.

“This is a point with extreme sensitivity, with the potential to generate great volatility in US markets and cause an escape of dollarized assets.”

The expert also commented that there have been few progress in commercial negotiations between the countries affected by customs, signals limited progress and indicates that this risk factor may extend beyond the originally planned 90 -day break. “Another growing concern is the relationship between US and China, with fear that climbing commercial disputes exceeds economic issues and entails broader geopolitical elements.”

Also read: China warns countries against commercial agreements with the United States to damage Beijing

For him, although the Brazilian market has been favored by the local holiday today, and avoids direct exposure to the global movement, there is again pressure on the new coins of pairs of real, due to the highest risk aversion environment and the reduction in commodity prices.

Adrs

BR20 collects ADRs (American depository receipts) of the most important companies in Brazil, and EWZ is the most important ETF (Stock Exchange Fund) Brazilian negotiated the US market. He replies the MSCI Brazil index.

The largest decline in the trade period was Embraer, which fell 3.38%, followed by BRF, with a reduction of 2.48%. Petrobra’s receipt closed 1.11%, but Vale rose 0.11%.