Feb 9, 2022 - Economy & Business

Charted: Brazil stocks boom

Data: FactSet; Chart: Axios Visuals
Data: FactSet; Chart: Axios Visuals

Brazil's stock market is emerging as an early winner in 2022, with its performance trouncing most other major indexes so far.

Why it matters: The rally in the Ibovespa underscores how commodity producers can benefit in an inflationary environment.

  • Brazil is a major producer of raw materials like iron ore, soybeans and petroleum, and its markets are dominated by companies like energy giant Petrobras, and Vale, a massive iron miner.

Yes, but: The markets are not the economy. What's good for commodity companies — higher prices — can hurt elsewhere.

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