# Brazil markets soar as new government vows to shrink state

> Bolsonaro's cabinet unveiled plans on January 2, 2019 to step up privatisations, toughen prison sentences, and shift control of indigenous land claims to the Agriculture Ministry. Brazil's real rose 2.4% and the Bovespa gained 3.6% as investors cheered economic pledges by Economy Minister Paulo Guedes.

- Date: 2019-01-03 · published 2019-01-03T12:00:00.000Z
- Category: policy · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/12357-brazil-markets-soar-as-new-government-vows-to-shrink-state
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Pledges of tax cuts and pension reform lift the real, which lowers the local-currency cost of Brazilian soybean and meal exports and can soften international prices for those commodities.

## Read by commodity

- SBM: neutral
- USDBRL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2019-01-03 | 5 | -4.6% | -3.0 | New government's privatisation and economic pledges lifted the real 2.4% and Bovespa 3.6%, reflecting improved investor sentiment and capital inflows. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-10-31 | [Brazilian government reaches agreement on spending cuts](https://feedsoft.ai/events/28083-brazilian-government-reaches-agreement-on-spending-cuts.md) | -1.3% | +3.8% |
| USDBRL | 2022-10-03 | [Brazil markets post best day since 2020 as Bolsonaro outperforms polls](https://feedsoft.ai/events/7984-brazil-markets-post-best-day-since-2020-as-bolsonaro-outperforms-polls.md) | -3.4% | -2.9% |
| USDBRL | 2024-12-20 | [Markets stabilize as Central Bank acts, House OKs spending review](https://feedsoft.ai/events/27147-markets-stabilize-as-central-bank-acts-house-oks-spending-review.md) | +1.0% | -1.9% |
| USDBRL | 2025-06-25 | [Brazil’s Central Bank intervention in FX market raises questions](https://feedsoft.ai/events/24424-brazil-s-central-bank-intervention-in-fx-market-raises-questions.md) | -0.7% | +0.9% |
| USDBRL | 2018-10-08 | [Brazil: Anti-establishment wave prevails \| articles \| ING THINK](https://feedsoft.ai/events/7666-brazil-anti-establishment-wave-prevails-articles-ing-think.md) | -4.1% | -4.3% |
| SBM | 2025-04-22 | [US soybean oil market set to soar \| Food Business News](https://feedsoft.ai/events/25205-us-soybean-oil-market-set-to-soar-food-business-news.md) | -2.2% | -1.7% |
| SBM | 2024-03-25 | [Viewpoint: Brazil biodiesel input demand, risks to rise \| Latest Market News](https://feedsoft.ai/events/31309-viewpoint-brazil-biodiesel-input-demand-risks-to-rise-latest-market-news.md) | -2.4% | +1.0% |
| SBM | 2021-11-23 | [Indian farmers hold soybeans as government measures cut prices](https://feedsoft.ai/events/44077-indian-farmers-hold-soybeans-as-government-measures-cut-prices.md) | -5.2% | +5.6% |

## Sources

- newsbook.com.mt: https://newsbook.com.mt/en/brazil-markets-soar-as-new-government-vows-to-shrink-state/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.