Brazil’s Ibovespa plunged 2630 points or 2.7% to 93,952 on Friday, as dim domestic economic data and rising global coronavirus cases weighed heavily on sentiment. Figures showed that unemployment jumped to 14.4% in the three months to August from 13.8% in the previous month, well above expectations of 14.2%. Meanwhile, data from the central bank showed the nominal budget deficit widened to BRL 103.4 billion in September, much more than from BRL 45.9 billion gap in the corresponding month of the previous year and consensus of a BRL 96 billion shortfall. During the session, the central bank intervened FX markets and sold USDs to ease heavy downward pressure on the BRL that had pushed it close to an all-time low. During the week, the Ibovespa plunged 7.2% to book its worst week since March.
Historically, the Brazil Stock Market (BOVESPA) reached an all time high of 119593.10 in January of 2020. Brazil Stock Market (BOVESPA) - data, forecasts, historical chart - was last updated on October of 2020.
The Brazil Stock Market (BOVESPA) is expected to trade at 93646.06 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 85359.31 in 12 months time.