403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Ibovespa Falls Below 119,000 Points On Mixed Economic Data
(MENAFN- The Rio Times) Brazil's Ibovespa index dropped 0.77% to 118,856.48 points on January 10, 2025, following key economic releases.
The benchmark maintained a weekly gain of 0.27% despite pressure from Brazil's IPCA inflation data and stronger-than-expected U.S. employment figures. Foreign investors withdrew R$3.04 billion ($490 million) from Brazilian Stocks in 2025's first week.
Brazil's December IPCA inflation rose 0.52%, pushing the full-year rate to 4.83%, above the central bank 's 3% target but within the 4.5% tolerance limit.
Food and beverage prices surged 7.62% annually, driving inflation higher. Meanwhile, U.S. payrolls added 256,000 jobs in December, exceeding the expected 165,000, keeping unemployment steady at 4.1%.
Market reactions varied across sectors. Oil companies gained, with Petrobras (PETR3; PETR4), Brava Energia (BRAV3), and Prio (PRIO3) rising on higher crude prices.
Retail stocks Lojas Renner (LREN3) and Casas Bahia (BHIA3) declined after inflation data. Airlines Azul (AZUL4) and Gol (GOLL4) fell amid dollar strength and rising fuel costs.
The Brazilian real weakened to R$6.10 ($1), up nearly 1% following the U.S. jobs data. Analysts expect the currency to stabilize around R$6.00 ($1) by year-end, though fiscal policy concerns persist.
Brazil's economic growth is expected to slow in 2025, with the central bank potentially considering further rate hikes to combat inflation pressures.
Looking ahead, market sentiment remains cautious as Brazil navigates both domestic challenges and global economic headwinds. The recent outflow of foreign capital highlights ongoing investor concerns.
In short, mixed sector performance reflects the complex interplay of inflation, currency movements, and international market dynamics.
The benchmark maintained a weekly gain of 0.27% despite pressure from Brazil's IPCA inflation data and stronger-than-expected U.S. employment figures. Foreign investors withdrew R$3.04 billion ($490 million) from Brazilian Stocks in 2025's first week.
Brazil's December IPCA inflation rose 0.52%, pushing the full-year rate to 4.83%, above the central bank 's 3% target but within the 4.5% tolerance limit.
Food and beverage prices surged 7.62% annually, driving inflation higher. Meanwhile, U.S. payrolls added 256,000 jobs in December, exceeding the expected 165,000, keeping unemployment steady at 4.1%.
Market reactions varied across sectors. Oil companies gained, with Petrobras (PETR3; PETR4), Brava Energia (BRAV3), and Prio (PRIO3) rising on higher crude prices.
Retail stocks Lojas Renner (LREN3) and Casas Bahia (BHIA3) declined after inflation data. Airlines Azul (AZUL4) and Gol (GOLL4) fell amid dollar strength and rising fuel costs.
The Brazilian real weakened to R$6.10 ($1), up nearly 1% following the U.S. jobs data. Analysts expect the currency to stabilize around R$6.00 ($1) by year-end, though fiscal policy concerns persist.
Brazil's economic growth is expected to slow in 2025, with the central bank potentially considering further rate hikes to combat inflation pressures.
Looking ahead, market sentiment remains cautious as Brazil navigates both domestic challenges and global economic headwinds. The recent outflow of foreign capital highlights ongoing investor concerns.
In short, mixed sector performance reflects the complex interplay of inflation, currency movements, and international market dynamics.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
- Manuka Honey Market Report 2024, Industry Growth, Size, Share, Top Compan...
- Modular Kitchen Market 2024, Industry Growth, Share, Size, Key Players An...
- Acrylamide Production Cost Analysis Report: A Comprehensive Assessment Of...
- Fish Sauce Market 2024, Industry Trends, Growth, Demand And Analysis Repo...
- Australia Foreign Exchange Market Size, Growth, Industry Demand And Forec...
- Cold Pressed Oil Market Trends 2024, Leading Companies Share, Size And Fo...
- Pasta Sauce Market 2024, Industry Growth, Share, Size, Key Players Analys...
Comments
No comment