Ibovespa Rises to 126,000 Points as Carrefour Soars

The Ibovespa, Brazil’s primary stock index, extended its gains for a second consecutive session on Tuesday, driven by strong commodity performance, easing inflation, and a surge in Carrefour Brasil shares.

The index closed up 0.76% at 126,521.66 points, while the U.S. dollar fell 0.31%, ending the day at R$5.7678. Carrefour Brasil (CRFB3) led the Ibovespa gains, with shares soaring over 15% during the session.

The rally followed news that its French parent company, Carrefour S.A., proposed converting the Brazilian unit into a wholly-owned subsidiary. It also included plans to delist it from the B3 stock exchange.

This development fueled investor optimism and significantly boosted the retailer’s stock. Telecom operator TIM (TIMS3) also posted notable gains after reporting a normalized net profit of R$1.06 billion for the quarter, a 17.1% increase compared to the same period in 2023.

Analysts had anticipated a profit of R$1 billion, making the results better than expected. Among heavyweights in the index, Petrobras (PETR4; PETR3) rose in line with oil price increases, while mining giant Vale (VALE3) ended in negative territory.

On the downside, Automob (AMOB3) gave up more than 3%, reversing gains from the previous session. Azul (AZUL4) also declined for a third straight day as rising oil prices heightened concerns about higher jet fuel costs for airlines.

U.S. Stocks Show Mixed Results

In international markets, U.S. stocks showed mixed results amid Federal Reserve Chair Jerome Powell’s comments. This was also influenced by renewed trade tensions under President Donald Trump.

Powell stated there was no urgency to cut interest rates, which currently stand between 4.25% and 4.50%. Meanwhile, Trump confirmed a 25% tariff on steel and aluminum imports, raising fears of a potential trade war that could impact global inflation and economic growth.

Investors are now awaiting January’s Consumer Price Index (CPI) data set for release on Wednesday. While not the Fed’s preferred inflation gauge, this metric will help shape expectations for future U.S. interest rate policies.

Major U.S. indices closed as follows: Dow Jones rose 0.28% to 44,593.65 points; S&P 500 edged up 0.03% to 6,068.50 points; Nasdaq dropped 0.36% to 19,643.86 points.

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