Despite a relatively good start to the year, in recent months, IBOVESPA has
suffered serious declines. This week, IBOVESPA has only plunged deeper,
closing at 11,439 points, at a sharp 2.07% decrease.
Strongly developed companies, such as Bradesco, have suffered, with their
shares plummeting at a 1.88% decrease.
The Brazilian mining company, Vale, has also been jeopardized. Wobbling numbers at
Vale have been expected, mostly due to the Chinese government’s restricting laws
imposed on steel production, in efforts to reduce carbon
dioxide emissions. Other harsh declines are likely to the Brazilian president’s, Jair Bolsonaro,
decision to increase the tax on financial operations (IOF), in hopes of investing more money into
‘Auxilio Brasil’. However, companies such as Magazine Luiza (MGLU3), Natura (NTCO3), and
Raia Drogasil (RADL3) positively stand out in the Brazilian market, showing the most
promising growth throughout this week.
Internationally, the American markets, S & P 500, and The Dow Jones have mirrored the
Brazilian market, closing at devaluations of 0.91%, and 0.48%, respectively.
Written by: Bruna Zarzur
Edited by: Anna Kissajikian