FX.co ★ Ibovespa Posts 2.5% Weekly Gain

The Ibovespa index experienced a modest rise of 0.2%, concluding at 132,190 points on Friday, and achieving a notable weekly increase of 2.5%. This positive trend was fueled by investor confidence following the approval of Brazil’s 2025 budget and indications from its central bank regarding monetary policy. Notably, on Thursday, Congress approved the 2025 budget bill, projecting a primary surplus of BRL 15 billion—substantially above the initial August forecast of BRL 3.7 billion, thanks to adjusted revenue projections. Concurrently, Brazil’s central bank implemented a 100 basis point rate hike for the third straight meeting, sustaining its current policy approach while hinting at a possible deceleration of rate increases, amidst signs of slowing economic growth. Nevertheless, apprehensions about an escalating global trade war and shifting U.S. trade policies tempered these gains. President Trump expressed "flexibility" concerning his reciprocal tariff strategy, yet remained firm against granting exceptions for the new tariffs. In the stock market, Hypera saw a 3.2% surge in its stock price, despite a 74.2% decline in net income, as the company focused on optimizing its working capital.