INSUBCONTINENT EXCLUSIVE:
The Brazilian stock market (B3) ended February 28, 2025, on a sour note, with the Bovespa index (IBOVESPA) dropping 1.60% to close at
The decline marked a one-month low as global and domestic factors weighed heavily on investor sentiment.The day reflected a broader sell-off
announcement of new tariffs on imports from Canada, Mexico, and China rattled global markets
This policy move heightened fears of a prolonged trade war, sparking risk aversion across equities worldwide.Asian and European markets also
suffered losses, while United States indices showed mixed results by the close, with the Dow Jones up 0.39%, the S-P 500 rising 1%, and the
outlook added to the pessimism
Market Falls Amid Global Uncertainty and Domestic Concerns
as reported by the central bank
Foreign direct investment (FDI) covered only $6.5 billion of this shortfall, raising concerns about external financing sustainability.The
Marcopolo SA rose 2.80% to R$7.35 ($1), buoyed by strong export demand and solid earnings results.Eletrobras gained 2.60% to R$38.22 ($6),
supported by optimism around privatization efforts
On the losing side, Marfrig Alimentos SA plunged 10.15% to R$13.63 ($2), hurt by rising input costs and weak earnings guidance.Trading
volumes on B3 were slightly below average as investors remained cautious amid heightened volatility.ETF flows also reflected this sentiment;
cryptocurrency ETFs experienced significant outflows globally, with Bitcoin ETFs losing approximately $266 million in net assets.Brazilian
Stock Market Falls Amid Global Uncertainty and Domestic ConcernsTechnically, the IBOVESPA tested its support level near 123,000 points but
remained below its 50-day moving average, signaling bearish momentum
Analysts noted oversold conditions with a Relative Strength Index (RSI) suggesting potential for a short-term rebound.Market participants
voiced concerns about the challenging environment
economic vulnerabilities as additional pressure points.The combination of global uncertainty and domestic challenges leaves investors wary
as they look ahead to key developments in trade policies and economic data for signs of stabilization or further turmoil in March.
