The first Ibovespa trading session of 2019 was marked by euphoria, driven by a positive outlook for the Brazilian economy under Jair Bolsonaro's administration
The first Ibovespa trading session of 2019 was marked by euphoria, driven by a positive outlook for the Brazilian economy under Jair Bolsonaro's administration, and broke a historic record by closing above 91,000.
The main driver of this optimism was the confirmation that Bolsonaro's party (PSL) will support the re-election of Rodrigo Maia (DEM-RJ) to the House of Representatives. The stock market believes that Maia's re-election may facilitate the approval of Bolsonaro's reforms.
Signals regarding the reform of the pension system and the privatization agenda were other factors behind today's rally. Ibovespa grew 3.56% and reached 91,012,31 points, surpassing the record reached on December 3, 2018 (89,820,09 points). In the intraday high, the index reached 91,478,84 points (+ 4.09%). The trading volume was R$17 billion.
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