The Ibovespa index closed the year at 120,283.40 points, reflecting a slight increase of 0.01% on the last trading day. However, this minor uptick could not offset a significant annual decline of 10.38%, marking the worst performance since 2021.
The U.S. dollar ended at R$ 6.1802, down 0.21%. However, it gained 27.34% against the Brazilian real throughout 2024, marking the largest annual increase since 2020.
This shift highlights ongoing concerns over Brazil‘s economic stability. Investors reacted to the latest Boletim Focus report, which showed rising inflation projections for 2025 for the eleventh consecutive week.
Brazil’s public sector reported a primary deficit of R$ 6.620 billion in November, an improvement from last year’s R$ 37.270 billion deficit and better than market expectations of R$ 7 billion.
Market participants also monitored President Lula’s meeting with Gabriel Galípolo, who will take over as Central Bank president next month. This leadership change raises questions about future monetary policy direction.
Brazil’s Stock Market Ends Year Down 10.38%, Worst Performance Since 2021. (Photo Internet reproduction)
On the stock exchange, Americanas (AMER3) saw a dramatic rise of over 54% due to the end of a lock-up period for shares related to its recovery plan. Azul (AZUL4) attempted to recover losses but faced challenges from broader market trends.
Brava Energia (BRAV3) led declines as oil prices fell more than 2%, impacting Petrobras (PETR3; PETR4). However, Petrobras managed a slight gain due to favorable oil market conditions and positive statements from its CEO regarding profit generation.
Looking ahead, Brazil’s economic landscape remains complex. The Central Bank faces pressure to manage inflation while maintaining growth, with projections indicating potential challenges in achieving fiscal discipline amidst rising inflation expectations.
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