Brazil’s Financial Morning Call for February 24, 2025
Brazilian financial markets are set for a pivotal trading session today, shaped by a mix of domestic economic releases and global developments that could influence investor sentiment and market dynamics.
Today’s economic calendar in Brazil includes the release of Federal Tax Revenue data at 7:30 AM local time (10:30 AM GMT), which will provide insights into the government’s fiscal health and capacity to manage public spending.
This is crucial as it reflects the sustainability of Brazil’s public finances amid ongoing economic challenges. Additionally, the Focus Bulletin at 8:25 AM local time (11:25 AM GMT) will shed light on market expectations for inflation, interest rates, and GDP growth, offering clues about monetary policy trends.
Globally, key events include:
In Germany, the release of the Ifo Business Climate Index and its components—Business Expectations and Current Assessment—at 4:00 AM GMT will provide a snapshot of business sentiment in Europe’s largest economy.
The Eurozone CPI data at 5:00 AM GMT will be critical for gauging inflationary pressures and their implications for European Central Bank policy.
In the Americas, the 2-Year Note Auction at 1:00 PM GMT could influence U.S. Treasury yields and global risk appetite.
Economic Agenda for February 24, 2025
Brazil
- 07:30 AM – Federal Tax Revenue
- 08:25 AM – Focus Bulletin
The Americas
- 01:00 PM – 2-Year Note Auction
Europe
- 04:00 AM – German Business Expectations (Feb)
- 04:00 AM – German Current Assessment (Feb)
- 04:00 AM – German Ifo Business Climate Index (Feb)
- 05:00 AM – Core CPI (YoY) (Jan)
- 05:00 AM – CPI (MoM) (Jan)
- 05:00 AM – CPI (YoY) (Jan)
- 08:15 AM – MPC Member Ramsden Speaks
Brazil’s Markets on Friday
The Ibovespa, Brazil’s benchmark stock index, closed at 127,128.06 points on February 21, down 0.37 percent for the day and 0.89 percent for the week. Investor sentiment was dampened by Finance Minister Fernando Haddad’s proposal to exempt income tax for earners below R$5,000 per month while increasing taxes on wealthier individuals. Concerns about potential fiscal strain weighed on markets.
The Brazilian real weakened against the U.S. dollar, closing at R$5.7304, up 0.45 percent daily and 0.58 percent weekly. This depreciation reflected broader risk-off sentiment amid global economic uncertainty.
U.S. Markets on Friday
U.S. stocks fell sharply after reports showed that worries about President Donald Trump’s policies may be hitting the economy. The S&P 500 sank 1.7% Friday for its worst day in two months. The Dow Jones Industrial Average dropped 1.7%, and the Nasdaq composite tumbled 2.2%.
One report suggested U.S. business activity is close to stalling, with optimism slumping because of worries about tariffs and other potential policies from Washington. Reports on consumer sentiment and home sales also came in weaker than expected.
On Friday:
- The S&P 500 fell 104.39 points, or 1.7%, to 6,013.13.
- The Dow Jones Industrial Average fell 748.63 points, or 1.7%, to 43,428.02.
- The Nasdaq composite fell 438.36 points, or 2.2%, to 19,524.01.
- The Russell 2000 index of smaller companies fell 66.39 points, or 2.9%, to 2,195.35.
Commodity Markets
Oil Prices
Oil markets opened the week on a cautious note as prices edged lower, reflecting a mix of supply concerns and weak demand signals. Brent crude traded at $74.24 per barrel, down 0.3%, while WTI crude fell 0.4% to $70.20 per barrel.
Gold Prices
Gold prices hovered near record highs on February 24, 2025, as traders locked in profits after last week’s peak of $2,954.69 per ounce.
Cryptocurrency Market
Bitcoin remained stable over the weekend despite market volatility, while altcoins exhibited mixed performances. A recent Binance survey highlighted growing interest in cryptocurrencies across Latin America, with 95 percent of users planning to expand their investments in 2025.
Companies and Markets
M Dias Branco (MDIA3)
The food giant reported a challenging year in 2024, with net income falling by 27.3 percent to R$646 million, attributed to operational disruptions and pricing adjustments. Despite these setbacks, the company retained leadership in key markets like biscuits and pasta.
Azul Airlines (AZUL4)
Azul announced plans to raise up to R$3.37 billion through a capital increase to strengthen liquidity amid its restructuring efforts. The move reflects Azul’s commitment to addressing its $5.8 billion debt burden while navigating a competitive aviation market.
Nubank (NUBR33)
Nubank posted an impressive 85 percent increase in Q4 profit, reaching $552.6 million. The fintech giant continues to expand its customer base across Latin America while maintaining strong credit quality metrics.
Mercado Libre (MELI34)
Mercado Libre achieved record Q4 results with a net profit of $639 million, up 287 percent year-over-year, driven by robust e-commerce growth across Brazil and other key markets.
Engie Brasil Energia (EGIE3)
Engie reported strong Q4 results with adjusted net income rising by 29.4 percent year-over-year, supported by strategic investments in renewable energy projects like wind and solar complexes.
Outlook
Today’s market trajectory will hinge on domestic fiscal data and global macroeconomic indicators such as European CPI figures and U.S. Treasury auctions. The Ibovespa may remain under pressure as investors assess fiscal risks tied to proposed tax reforms. Meanwhile, external factors such as inflation trends in Europe and global risk sentiment will play a crucial role in shaping Brazil’s financial landscape.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil Morning Call — Live Board
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Brazil Morning Call — Live Board
+1.27%
208,836.77
+1.27%
64,986.91
+0.52%
11,051.39
+0.25%
2,828,812
-0.13%
2,534.92
+0.36%
59,610.00
+0.97%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 208,836.77 | +1.27% | +21.85% | 206,220.24 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| EUR/BRL | 5.95 | +1.01% | -5.83% | 5.89 | 5.98 | 5.94 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| KLABIN | 17.69 | +0.80% | -2.95% | 17.55 | 17.74 | 17.48 | 2,057,400 |
| SLCE3 | 13.34 | +0.30% | -12.25% | 13.30 | 13.42 | 13.20 | 1,454,200 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
| LREN3 | 11.87 | -1.33% | -28.65% | 12.03 | 12.17 | 11.83 | 9,683,300 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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