The Impact of Macroeconomics on Stock Market Index in Brazil

Abstract

A country's economy can develop rapidly if there are investments in various economic sectors. Investment has a role as one of the essential components of national income in promoting economic growth. One of the means of development in each country is the capital market, which has the function of monetary intermediation of the global economy. Macroeconomic indicators influence investment activities in a country because macroeconomic indicators are signals to investors in investing. This study's object was the macroeconomic indicators, namely interest rate, exchange rate, inflation, and money supply, and their impacts on stock prices. This study used data for the 2004-2018 period. The results showed that inflation, interest rate, and the exchange rate had no impact on stock prices, while money supply impacted stock prices.