The Brazilian stock market, tracked by the Ibovespa index, gained 0.40% on May 23, 2025, closing at 137,824.29 points, according to market data.
This late rally followed a volatile day driven by domestic fiscal changes and global trade concerns. Despite the daily uptick, the index dropped 0.98% over the week, reflecting broader uncertainty.
Investors reacted to Brazil’s Ministry of Finance increasing the IOF tax on corporate credit and foreign exchange the previous night.
The government quickly reversed some measures after backlash, easing tensions. Central Bank President Gabriel Galípolo criticized the IOF hike but praised the rollback, stressing cautious monetary policy with the Selic rate at 14.75%.
Globally, US markets fell as President Donald Trump announced a 50% tariff on EU imports, effective June 1, 2025.
The Dow Jones dropped 0.61% to 41,603.07, the S&P 500 fell 0.67% to 5,802.82, and Nasdaq declined 1.00% to 18,737.21.
Brazilian Market Edges Up Amid Global Tensions on May 23, 2025.
Brazilian Market Edges Up Amid Global Tensions on May 23, 2025
Apple shares slid over 2% after Trump’s 25% tariff threat on non-US-made products, impacting global sentiment.
In Brazil, Braskem led gains, rising 3.2% to R$ 18.45, fueled by a 1.5% oil price increase to $75 per barrel. Petrobras followed, climbing 2.1% to R$ 38.50.
However, Vale fell 1.8% to R$ 60.32 as iron ore prices dropped 2% to $89 per ton. Trading volume hit R$ 22 billion, below the 30-day average of R$ 25 billion.
The US dollar weakened 0.45% against the real, closing at R$ 5.6470, reflecting Brazil’s high interest rates attracting carry trades.
Yet, inflation concerns persist, with the Selic rate signaling tight conditions. Analysts noted fiscal uncertainty and global trade tensions as key pressures on Brazil’s market.
Technically, the Ibovespa chart shows the index consolidating between 136,000 and 140,000 points.
The 50-day moving average at 138,000 resisted upward moves, while the 200-day average at 135,500 supported the price.
The 14-period RSI stood at 48, indicating neutral momentum, with no overbought or oversold signals.
Bollinger Bands, using a 20-day SMA, showed the price within the bands, reflecting low volatility. Volume remained steady, lacking a spike to confirm the late rally.
Fibonacci retracement levels suggest potential support at 136,888 (38.2%) if the index falls further. Resistance looms at 140,000, a critical level for bullish momentum.
The index’s direction hinges on upcoming inflation data and US tariff developments. Investors remain cautious, balancing Brazil’s commodity-driven gains against macroeconomic risks.
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