The start of the second half of the year brought positive news for the Ibovespa, which rose 0.65% to 124,718.07 points, adding 811.52 points. Despite initial declines, the commercial dollar also climbed 1.15% to R$ 5.65 ($1.01) by the day’s end. Future interest rates increased, particularly in the short term, with international markets showing gains.
President Lula’s commitment to maintaining minimum wage policies has sparked market speculation about potential costs. Economist estimates suggest that minimum wage increases could cost R$ 550 billion ($98.57 billion) over ten years, threatening to offset the benefits of the 2019 pension reform.
Adjustments to the Fiscal Responsibility Law could save the government billions in health expenditures. President Lula criticized the Central Bank’s leadership, while companies like Petrobras and Vale boosted the stock market. Financial stocks dampened gains, with Gol facing challenges and reporting losses.
Brazilian Market Update
Despite challenges, the Brazilian market continues to show resilience and potential for growth amidst economic uncertainties.