Brazil Leads Global Losses in 2024 as Fiscal Angst Takes Hold

Brazil's stock market has been a laggard in 2024, with the Ibovespa index declining 10.37% since the beginning of the year. This underperformance can be attributed to a combination of domestic issues and global factors. The real's devaluation and high interest rates have contributed to Brazil's poor performance, making imports more expensive, increasing inflation, and reducing the purchasing power of consumers and businesses. Additionally, fiscal uncertainty following the adjustment of next year's fiscal targets has dampened investor confidence.