The Ibovespa stock index closed 0.8% below the flatline at the 117,470 level on Wednesday, retreating after two sessions of gains, as markets assessed cooling inflation against ongoing reports of higher taxation measures. August’s IGP-M price index showed a monthly deflation of 0.14%, surprising expectations of a 0.15% increase. Similarly, producer prices declined by a record-high 14.07% annually in July, offering the central bank flexibility to maintain steady borrowing costs. Banks led the downturn to pare yesterday’s rally, as Itau fell 2.1% as well as Banco Bradesco (-2.2%), Banco Do Brasil (-1.2%), and Banco Santander (-1.2%). On the other hand, Petrobras gained 0.6% on higher crude oil prices.
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Historically, the Brazil Stock Market (BOVESPA) reached an all time high of 131190.30 in June of 2021. Brazil Stock Market (BOVESPA) - data, forecasts, historical chart - was last updated on August of 2023.
The Brazil Stock Market (BOVESPA) is expected to trade at 111852.40 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 100697.28 in 12 months time.