Brazil’s Ibovespa plummeted 1.27% to 124,619.40 points on Friday, marking a weekly loss of 1.20%, as fiscal concerns and global trade tensions rattled investors.
The downturn followed Bradesco’s fourth-quarter earnings release, which revealed a recurring profit of R$5.4 billion—an 87.7% annual jump but below market expectations due to one-time gains from branch closures.
Shares of BBDC4 sank over 4%, becoming the day’s most-traded stock. Domestic fiscal unease intensified after the government signaled potential increases to the Bolsa Família welfare program amid rising food prices.
Analysts warn the move could strain inflation control efforts, conflicting with market demands for spending cuts. Minister Wellington Dias confirmed a review of the program would be submitted to President Lula by March.
Globally, fears of reciprocal tariffs by former U.S. President Donald Trump dragged down heavyweights like Petrobras and Vale. Trump’s pledge to announce new trade measures next week amplified market jitters, compounding pressure from mixed U.S. jobs data.
January’s payroll showed 143,000 new jobs—below forecasts—while unemployment held at 4%, reinforcing expectations the Federal Reserve will delay rate cuts until June. The U.S. dollar climbed 0.52% to R$5.7936 against the real, though it fell 0.74% weekly.
On Wall Street, the Dow Jones, S&P 500, and Nasdaq dropped 0.99%, 0.95%, and 1.36%, respectively. Brazilian tech firm Totvs and education group Cogna led local gains, while Automob plunged 19% weekly amid unclear catalysts.
Bradesco’s earnings miss and fiscal uncertainty overshadowed positive corporate results elsewhere, highlighting investor sensitivity to macroeconomic risks. With Trump’s trade policies and Brazil’s welfare debate unresolved, markets brace for continued volatility.
