The BRIC (Brazil, Russia, India, China) markets completely fell apart during the downturn in commodities and global manufacturing over the last two years.  But 2016 has been a different story.  The first few weeks of the year saw continued pain, but once lows were put in, equities in all four BRIC countries staged massive rallies.

Below we take a look at short and long-term price charts for Brazil’s Ibovespa equity index in local currency.  (Here’s our prior post on China’s stock market.  We’ll be doing additional posts on India and Russia as well.)

Back-to-back moves of 3% have now pushed Brazil’s main stock index up 45% from its lows earlier this year.  You can see in the first chart below that gains over the last few days have caused a breakout to six-month highs.

The second chart shows a clear downtrend break over the one-year period, but the five year chart shows that Brazilian stocks still have a long, long road to recovery.

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