Brazils Ibovespa plummeted 1.27% to 124,619.40 points on Friday, marking a weekly loss of 1.20%, as fiscal concerns and global trade tensions rattled investors.The downturn followed Bradescos fourth-quarter earnings release, which revealed a recurring profit of R$5.4 billionan 87.7% annual jump but below market expectations due to one-time gains from branch closures.Shares of BBDC4 sank over 4%, becoming the days most-traded stock.
Domestic fiscal unease intensified after the government signaled potential increases to the Bolsa Famlia welfare program amid rising food prices.Analysts warn the move could strain inflation control efforts, conflicting with market demands for spending cuts.
Minister Wellington Dias confirmed a review of the program would be submitted to President Lula by March.Globally, fears of reciprocal tariffs by former United States President Donald Trump dragged down heavyweights like Petrobras and Vale.
Trumps pledge to announce new trade measures next week amplified market jitters, compounding pressure from mixed United States jobs data.Brazilian Stocks Tumble Over 1% as Bradesco Earnings Disappoint and Trump Tariffs Loom.
(Photo Internet reproduction)Januarys payroll showed 143,000 new jobsbelow forecastswhile unemployment held at 4%, reinforcing expectations the Federal Reserve will delay rate cuts until June.
The United States dollar climbed 0.52% to R$5.7936 against the real, though it fell 0.74% weekly.On Wall Street, the Dow Jones, S-P 500, and Nasdaq dropped 0.99%, 0.95%, and 1.36%, respectively.
Brazilian tech firm Totvs and education group Cogna led local gains, while Automob plunged 19% weekly amid unclear catalysts.Bradescos earnings miss and fiscal uncertainty overshadowed positive corporate results elsewhere, highlighting investor sensitivity to macroeconomic risks.
With Trumps trade policies and Brazils welfare debate unresolved, markets brace for continued volatility.