Ibovespa Falters as Brazil Weighs New Program and Trump Speaks Out

Brazil’s Ibovespa index closed lower for the second consecutive day. The market reacted to potential new government programs and statements from former U.S. President Donald Trump.

The index fell 0.30% to 122,971.77 points. Meanwhile, the U.S. dollar dropped 0.35% against the Brazilian real. Investors grew wary after news broke of a possible government initiative.

The program aims to provide low-cost food through a popular supply network. Its goals are to combat inflation and boost the government’s popularity. However, Finance Minister Fernando Haddad later dismissed these reports as mere rumors.

Trump’s comments at the World Economic Forum in Davos also influenced the market. He vowed to ask Saudi Arabia and OPEC to reduce oil prices. This statement put pressure on oil-related stocks. Petrobras shares fell by more than 1% as a result.

The former U.S. president also touched on interest rates. He stated he would demand an immediate reduction in rates if elected. Trump expressed his intention to speak with Federal Reserve Chair Jerome Powell “at the appropriate time.”

Ibovespa Falters as Brazil Weighs New Program and Trump Speaks Out. (Photo Internet reproduction)

Despite these pressures, some stocks performed well. Marfrig shares led gains after Goldman Sachs raised its target price. Banco do Brasil also saw an uptick following BTG Pactual’s reiterated buy recommendation.

Braskem continued its five-day rise after announcing new investments. In the U.S., stock markets reached new highs. The S&P 500 set both intraday and closing records. Investors are now looking ahead to the Federal Reserve’s upcoming interest rate decision next week.

The market’s mixed performance reflects ongoing economic uncertainties. Investors must navigate potential government interventions and geopolitical influences. As always, they should remain vigilant and adaptable in this dynamic environment.