The main Sao Paulo Index, Ibovespa, extended losses for the third straight session on Thursday, closing 1.1% lower at 98,542 level, as investors fretted about soaring inflation and a potential recession caused by tighter monetary policies. On the domestic economic front, Brazil's unemployment rate dropped to 9.8% in the quarter ended in May, the lowest rate for the period since 2015 and below market forecasts of 10.2%. Meanwhile, the Quarterly Inflation Report released by the Brazilian central bank pointed out that the probability of inflation exceeding the limits of the target tolerance range this year rose to 100% from 88% in the March estimate. On the political front, the vote on the basic text of the proposed constitution amendment was rescheduled for today, which is seen as crucial for President Bolsonaro's reelection. The Ibovespa erased 11.5% in June, its worst month since March 2020.
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 July of 2022.
The Brazil Stock Market (BOVESPA) is expected to trade at 92110.55 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 85992.87 in 12 months time.