In the last full week of operation in 2025, the financial market had a mixed day. The stock market rose sharply after data indicating an economic slowdown. The dollar rose, pressured by remittances from companies abroad, typical at the end of the year.
The Ibovespa index, from B3, closed Monday (19) at 162,482 points, with an increase of 1.07%. Rising throughout the session, the indicator recovered half of the losses since the beginning of the month.
Related news:
- Brazilian economic activity contracted by 0.2% in October.
- The market has lowered its inflation forecast to 4.36% for this year.
The Brazilian stock market hit a record high on the 4th, reaching 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 Monday at R$ 5.423, up R$ 0.012 (+0.23%). The exchange rate fell during the morning, reaching R$ 5.38 around 10 am, but reversed course and closed near the day’s high.
The US dollar rose 1.63% in December. In 2025, however, it is projected to fall 12.25%.
Regarding the stock market, the main factor driving the gains was the Central Bank’s announcement that the Brazilian economy contracted by 0.2% in October , according 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 its January meeting, instead of in March. Lower interest rates encourage the migration of investments from fixed income to the stock market.
Regarding the dollar, the rise was caused by internal and external factors. In Brazil, the remittance of profits from subsidiaries of foreign companies abroad is putting pressure on the exchange rate. Furthermore, the drop in oil prices on the international market has negatively impacted the currencies of emerging countries.
*With information from Reuters
