Following the Christmas holiday, Brazil’s Ibovespa index experienced a notable surge.
On Tuesday, the index rose by 0.39%, reaching 133,267 points, driven by strong performances from Petrobras and Vale.
Meanwhile, the dollar saw a modest decline, trading at R$ 4.85.
Investors in Brazil are keenly awaiting new fiscal measures aimed at achieving a primary deficit of zero by 2024.
Globally, attention is on U.S. economic data, particularly the Personal Consumption Expenditures inflation index, which indicated a slight decrease in prices.
Market predictions now show a strong likelihood of a U.S. Federal Reserve rate cut in March. This anticipation affects global financial markets, including Ibovespa.
The session’s most active stocks included Magazine Luiza, Vamos, Hapvida, Bradesco, and Itau Unibanco.
The previous trading session saw Ibovespa close higher, with notable gains in Casas Bahia, Raízen, and Alpargatas, but declines in Bradesco, Yduqs, and Cemig.
Overall, Ibovespa has shown a significant year-to-date increase, reflecting the dynamic nature of Brazil’s stock market.
Background
Following Ibovespa’s post-holiday surge, global financial markets have shown mixed outcomes.
Wall Street closed with mixed results on Friday, with the Dow Jones declining slightly, while the S&P 500 and Nasdaq Composite ended positively.
This was influenced by key inflation data and the expectation of the Federal Reserve to cut interest rates in 2024.
Inflation data showed a slight increase, with core PCE rising 0.1% in November, indicating progress toward the Fed’s target.
Last week, the S&P 500, Nasdaq, and Dow Jones all experienced gains, reflecting a positive trend in major indices.
These developments suggest cautious optimism in the financial markets, with investors closely monitoring inflation and interest rate prospects.