Ibovespa Gains as Lula’s Spending Cuts Proposal Bolsters Market
The Ibovespa closed up 0.08%, reaching 126,267.05 points, a gain of nearly 103.07 points. This marked a weekly increase of 1.91%, the third consecutive positive week.
This trend has not occurred since February. Additionally, all trading sessions were in green for the first time since June 5–9, 2023.
The commercial dollar fell for the third consecutive day, now by 0.48% to R$5.46. Future interest rates (DIs) also declined across the curve, supporting market optimism.
The payroll report’s release was crucial for the Federal Reserve’s decisions. June’s data was mixed, showing both strengths and weaknesses in the labor market.
Some economists suggested that weaker activity earlier in the week supports the view of a slowing economy. This increases the likelihood of a Fed rate cut in September.
However, upcoming inflation data might limit further cuts, indicating only one rate cut in December.
Another view suggests the US labor market is balanced, predicting a rate cut in December with a rising probability of an earlier cut in September.
Wall Street investors remained optimistic, closing major indices higher and lowering Treasury yields.
The Fed’s report highlighted significant inflation decreases over the past year, especially in housing services.
In Brazil, fiscal policy was a key focus. The federal government demonstrated a commitment to fiscal responsibility.
The Social Security Minister announced a review of temporary benefits starting in August. This review could affect 800,000 beneficiaries, aiming to balance public finances.
The President emphasized social policies’ importance, countering claims of excessive spending and advocating opportunities for all citizens.
The Finance Minister reiterated the government’s commitment to reducing expenses.
Brazilian Market Recap
Vale (VALE3) dropped 0.41%, following a 0.50% decline, aligned with falling iron ore prices in China. Petrobras (PETR4) fluctuated but ended up at 0.54%.
Notable performers in the oil sector included Enauta (ENAT3), up 3.59%, and 3R Petroleum (RRRP3), up 2.40%.
Bank stocks were mixed, with Bradesco (BBDC4) up 1.14%, Banco do Brasil (BBAS3) down 0.45%, and Itaú Unibanco (ITUB4) slightly up by 0.06%.
Airline stocks surged on the dollar’s decline and merger speculation between Azul (AZUL4) and Gol (GOLL4). AZUL4 soared 5.38%, while GOLL4 jumped 11.32%.
ASAI3 rose 3.81%, CRFB3 increased by 0.20%, and GPA (PCAR3) gained 7.51%. Raízen (RAIZ4) climbed 3.01%, and Vivara (VIVA3) appreciated by 1.61%.
Next week, investors will focus on consumer price indices. Brazil’s IPCA for June comes out on Wednesday, and the US CPI on Thursday.
This week’s positive performance sets the stage for continued market activity.
Deep Dive
For the complete picture, read our in-depth guide: Latin America Stock Markets 2026: Ibovespa, Merval, COLCAP, IPSA and IPC Guide
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.06%
173,714.08
-0.06%
66,615.43
+0.39%
10,886.14
-0.56%
3,199,934
+0.46%
2,298.34
+0.58%
57,220.16
—
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 173,714.08 | -0.06% | +28.14% | 173,825.27 | — | — | — |
| USD/BRL | 5.11 | +0.19% | -8.19% | 5.10 | 5.13 | 5.10 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| PETR4 | 40.90 | +2.53% | +29.97% | 39.89 | 41.11 | 40.41 | 32,096,300 |
| VALE3 | 72.94 | -0.05% | +34.33% | 72.98 | 73.12 | 72.10 | 13,456,000 |
| ITUB4 | 41.96 | -1.39% | +20.99% | 42.55 | 42.61 | 41.87 | 19,560,900 |
| BBDC4 | 18.29 | -0.65% | +14.10% | 18.41 | 18.48 | 18.21 | 55,066,000 |
| BBAS3 | 20.49 | -1.30% | -1.21% | 20.76 | 20.83 | 20.26 | 35,688,400 |
| B3SA3 | 15.20 | -1.23% | +10.63% | 15.39 | 15.37 | 15.17 | 48,828,300 |
| ABEV3 | 15.63 | +0.19% | +16.12% | 15.60 | 15.75 | 15.51 | 16,160,200 |
| WEGE3 | 43.63 | +0.32% | +3.66% | 43.49 | 44.02 | 43.15 | 8,200,700 |
| PRIO3 | 57.85 | +1.87% | +33.60% | 56.79 | 58.00 | 57.07 | 5,306,100 |
| SUZB3 | 41.93 | +0.55% | -16.97% | 41.70 | 42.62 | 41.40 | 8,204,800 |
| RENT3 | 38.23 | -1.62% | +2.33% | 38.86 | 38.80 | 37.87 | 5,880,900 |
| AZZA3 | 18.59 | +0.32% | -48.91% | 18.53 | 18.74 | 18.32 | 1,449,200 |
| CSNA3 | 5.05 | -0.98% | -36.16% | 5.10 | 5.11 | 5.00 | 7,618,200 |
| GGBR4 | 24.04 | +0.54% | +47.03% | 23.91 | 24.24 | 23.59 | 5,371,400 |
| ENEV3 | 25.68 | -1.04% | +86.63% | 25.95 | 26.18 | 25.66 | 12,337,200 |
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