Ibovespa Rises to 122,000 Points as Trump Takes Office

The Ibovespa index gained momentum after Donald Trump took office without announcing tariffs on imports. This development occurred on January 20, coinciding with Martin Luther King Day, capturing global market attention despite the U.S. markets being closed.

The Brazilian stock market’s main index closed up 0.41%, reaching 122,855.15 points. Meanwhile, the dollar ended trading at R$ 6.0421, down by 0.39%. Earlier in the day, the Central Bank intervened in the currency market for the first time in 2025, injecting $2 billion to stabilize the exchange rate.

Domestic corporate news influenced trading as President Luiz Inácio Lula da Silva held the first ministerial meeting of the year. He indicated that preparations for the 2026 election have begun and set specific targets for each minister to achieve by 2025.

Investors primarily focused on international developments, particularly Trump’s inauguration as U.S. President. Notably, Trump’s campaign promises regarding import tariffs did not feature prominently in his inaugural address.

This absence eased pressure on Brazil’s interest rates. Trump had previously pledged to impose tariffs on global imports, including Brazilian products. Such policies could lead to inflationary pressures and higher interest rates in the U.S., which would likely affect Brazil’s economic landscape.

Market Highlights

Braskem (BRKM5) stood out among Ibovespa stocks, continuing its upward trend from last week and surging over 12% during trading hours. This rise resulted from the announcement of seven projects worth an estimated R$ 614 million.

These projects aim to expand production capacity in Bahia, Rio Grande do Sul, and Alagoas. Cyclical stocks, sensitive to macroeconomic factors like interest rates, also performed well due to a decline in interbank deposit rates (DIs).

Conversely, Raízen (RAIZ4) led declines after releasing disappointing operational forecasts and abandoning its guidance for the 2024/2025 harvest. Its parent company, Cosan (CSAN3), also experienced significant losses.

Among major players, Petrobras (PETR4; PETR3) saw slight gains despite a downturn in oil prices. In contrast, Vale (VALE3) ended the day lower despite an increase in iron ore prices in China.

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