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Brazil's main stock index, the Ibovespa, surged 1.46% to close at 160,456 points in pre-holiday trading, reclaiming the 160,000 level. The rally was driven by strong gains in banking and utility sectors, fueled by positive domestic inflation data and a global "risk-on" mood. U.S. markets hitting record highs on robust GDP data provided additional support. Meanwhile, the Brazilian real held firm near 5.52 per U.S. dollar, supported by disinflation and the country's high-interest-rate "carry appeal". Analysts, however, warn of headwinds entering 2026, including a congressional probe into pension fraud,
