In the last full week of operation in 2025, the financial market had a split day. The stock market rose sharply after data on the economic slowdown. The dollar rose, pressured by remittances from companies abroad, typical at the end of the year.
The Ibovespa index, from B3, ended Monday (19) at 162,482 points, an increase of 1.07%. Rising throughout the session, the indicator recovered half of its losses since the beginning of the month.
The Brazilian stock market broke a record on the 4th, when it reached 164,485 points, but fell 4.31% the following day, after senator Flávio Bolsonaro (PL-RJ) announced his pre-candidacy for the Presidency of the Republic in 2026.
The foreign exchange market had a more pessimistic day. The commercial dollar closed the second selling at R$5.423, up R$0.012 (+0.23%). The price fell during the morning, reaching R$5.38 around 10 am, but reversed the movement and closed close to the day’s high.
The US currency rises 1.63% in December. In 2025, however, it drops 12.25%.
In relation to the stock market, the main factor that boosted the shares was the announcement, by the Central Bank, that the Brazilian economy contracted 0.2% in Octoberaccording to the Central Bank’s Economic Activity Index (IBC-Br).
The economic slowdown stimulates the stock market because it increases the chances of the Monetary Policy Committee (Copom) reducing interest rates at the January meeting, instead of March. Lower interest rates encourage the migration of fixed income investments to the stock market.
In relation to the dollar, the rise was caused by internal and external factors. In Brazil, sending remittances of profits from branches of foreign companies abroad puts pressure on prices. Furthermore, the fall in oil prices on the international market harmed the currencies of emerging countries.
*With information from Reuters
