Drop in China's production drives dollar to close at highest rate in 3 months
In a day of turmoil in the Chinese economy, US dollar began 2016 with a large increase, and São Paulo stock market (Bovespa) closed the trading session at the lowest value in almost seven years. On the year's first business day, the commercial dollar rose 2.17% and ended the day sold at R$4.034, the highest rate since September. For stock market, the day has also been marked by volatility. The São Paulo Stock Exchange index (Ibovespa) fell 2.68% and closed the session at 42,189 points, the lowest rate since April 2009, at the height of US subprime mortgage crisis. Among the most actives stocks, they have all registered losses—Petrobras shares have been the exception and rose 0.93% (in common shares) and 1.64% (in preferred shares).
Concerns about China marked the day. After disclosing the information on China's fall in industrial production for the tenth consecutive month in December, the Shanghai Stocks plummeted. Chinese economy's slowdown exerts strong effects on commodity-exporting countries like Brazil.
That's because the world's second largest economy is a major consumer of raw materials like iron and oil, and agricultural products like soybeans. The Chinese economy's fall has reflected in the decrease in these commodities' prices and in gains in exports.
*Data from Agência Lusa were added to this story
Translated by Amarílis Anchieta
Fonte: Drop in China's production drives dollar to close at highest rate in 3 months
