Brazil’s stock market is bouncing back. But will it last?

Brazil's Ibovespa stock index is among the world's best performers at the start of 2022, but moves in the U.S. and the upcoming election could cause the window of opportunity to slam shut

stock stocks brazil
São Paulo’s version of the Charging Bull statue did not last for long before being removed. The same could happen to the current bull market. Photo: Paralaxis/Shutterstock

After a dismal 2021, the Brazilian stock market began this year as an early winner, with its performance trouncing most major indexes around the world. Brazil’s Ibovespa is anchored on commodity-producing companies, which have seen share value soar as prices go up. Elsewhere, higher liquidity and a cheap currency also fuel the current momentum. 

However, increasingly unfavorable domestic and international scenarios leave experts thinking that the current optimism could have an expiration date.

Ibovespa ended January 7.33 percent up, its best monthly result since December 2020 and something of a surprise, considering the index ended 2021 with a...

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