Wednesday saw a frenzied tumble in the Brazilian stock market, Ibovespa, closing at a yearly low of 119,936.02 amidst economic and political uncertainties. On the same day, the commercial dollar climbed to R$5.40, reflecting market concerns. Despite initial gains, a downturn occurred after President Lula’s comments on Brazil’s primary deficit, sparking investor worries.
The day started with positive news in Brazil’s Monthly Service Survey, showing growth in April, and the U.S. disclosing its stable May Consumer Price Index. This stability indicated easing inflation pressures, with potential future policy decisions by the Federal Reserve.
However, news of internal government conflicts and potential undermining of Finance Minister Fernando Haddad led to further market instability, overshadowing the stable U.S. markets. By day’s end, only a few stocks managed gains, with notable declines in major companies like Petrobras and Vale, along with the banking sector.
As the market awaits tomorrow’s trends, concerns about Brazil’s economic stability and political impact persist, influencing investment climates and economic confidence globally.