Brazil expands aid to companies and the stock market hits a record high.

Brazil expands aid to companies and the stock market hits a record high.

The Brazilian economic landscape this week was marked by two major events: the expansion of the Sovereign Brazil Plan and a record-breaking sequence of gains on the stock exchange. Both reflect structural changes and market reactions to internal and external challenges.

Sovereign Brazil Plan: more companies may receive aid.

On Wednesday (12), the Ministries of Finance and Development, Industry, Trade and Services (MDIC) published Ordinance 21, which expands access to the Sovereign Brazil Plan. Now, companies that have at least 1% of revenue impacted by US tariffs between July 2024 and June 2025 will be able to apply for emergency financing lines.

Previously, the criterion required that the impact exceed 5% of gross revenue. The change represents a significant opening for small and medium-sized enterprises, which were previously excluded from the program. According to experts, the measure could benefit thousands of companies, especially in the agribusiness and manufacturing sectors.

Negotiations with the US are ongoing. Foreign Minister Mauro Vieira met with US Secretary of State Marco Rubio during the G7 summit in Niagara, Canada. Brazil has already submitted a formal negotiation proposal following a virtual technical meeting between the teams from both countries.

Brazilian stock market hits record high, accumulating 14 consecutive gains.

While the government adjusts policies to protect exporters, the financial market remains euphoric. The Ibovespa closed Monday's trading session (10) at 155,257 points, with an increase of 0.77%. It is the 14th consecutive increase, the longest sequence since the Real Plan.

In October, the stock market rose 3.82%, accumulating a gain of 29.08% in 2025 — the largest annual appreciation since 2019. The commercial dollar closed at R$ 5.307, falling 0.55% on the day and 14.12% for the year. The fall in the exchange rate and the expectation of a Selic rate cut in January, should October's inflation come in below expectations, are boosting investor optimism.

Corporate results and market trends

Among the companies, Casas Bahia stood out, showing revenue growth and improved EBITDA in the third quarter, but had a higher-than-expected net loss due to financial expenses. Banco do Brasil, on the other hand, had weak results, with increased provisions and a decline in asset quality, especially in rural credit.

In their technical analysis, XP specialists point out that most B3 stocks are rising, with banks like Itaú and Bradesco leading the movement. There are still doubts about the sustainability of this upward trend, but the overall outlook is optimistic.

Impacts and perspectives

Expanding the Sovereign Brazil Plan may alleviate the cash flow of companies affected by tariffs, but it does not solve the structural problem of trade relations with the US. Meanwhile, the stock market rally reflects investor confidence, but also risks of correction should inflation surprise or the external environment deteriorate.

For the technology and startup sector, the environment is one of opportunity, but also of caution. Companies that depend on exports need to adapt quickly, while investors are looking for new sectors to allocate resources.

Photo by engin akyurt on Unsplash