The Brazilian stock exchange’s main index, Ibovespa, continued its upward trend, bolstered by strong performances from banks and Vale (VALE3). The Ibovespa closed up 0.55% at 126,224.74 points, while the dollar dropped to R$5.7639, a decrease of 0.52%.
President Lula da Silva recently claimed that Brazil’s economy is experiencing its peak performance. He expressed confidence in the ongoing GDP growth and suggested that the dollar’s value against the real is normalizing, with inflation under control.
Itaú (ITUB4) reported a significant profit increase for Q4 2024, with a recurring management profit of R$10.9 billion, up 15.8% from the previous year.
This news, combined with improved profitability and reduced default rates, supported the banking sector‘s performance. In related news, the government forecasts the completion of the airline merger within 12 months, as stated by the Minister of Ports and Airports, Silvio Costa Filho.
Meanwhile, Raízen (RAIZ4) shares jumped over 10% after reports suggested the company might increase capital to manage Cosan’s debt. On the negative side, Automob (AMOB3) led the declines without specific corporate news, and Embraer (EMBR3) saw a retreat following gains from the previous day.
Petrobras (PETR4; PETR3) mirrored the fall in oil prices, but Vale (VALE3) ended higher as iron ore prices in China rose nearly 2%. Globally, U.S. markets closed mixed as investors awaited the employment report.
Global Market Dynamics
There are concerns that Trump’s tariff policies could potentially spark a trade war with China and Europe. New U.S. unemployment claims slightly increased last week, with expectations for January’s payroll growth at 169,000 jobs, down from December’s 256,000.
In Europe, stocks rose significantly, driven by mining companies’ positive earnings amidst hopes for peace in Ukraine. The Stoxx 600 ended up 1.17% at 544.84 points.
This narrative captures a day where domestic and international factors shaped market movements. It offers insights into Brazil’s economic landscape and its interplay with global trends.
