Ibovespa Rises with Santander and Embraer; Dollar Rebounds to R$5.79

The Ibovespa gained traction with banks and Embraer’s record jet orders, reclaiming 125,000 points; the dollar rose to R$5.79.

The Ibovespa index climbed 0.31% to 125,534.07 points as the earnings season kicked off. Investors focused on statements from Brazilian and U.S. officials alongside economic data.

The U.S. dollar rose by 0.38% to R$5.7942, ending its series of declines. In Brazil, President Lula announced plans to control inflation and living costs. He aims to ensure basic goods remain affordable for workers.

Finance Minister Fernando Haddad added that an upcoming income tax reform will offer exemptions for those earning up to R$5,000 monthly, with measures to offset revenue loss.

Brazil’s industrial production dropped by 0.3% in December, which influenced interest rate expectations. Embraer’s shares surged nearly 16% after securing a deal with Flexjet worth up to $7 billion for executive jets.

Analysts from JP Morgan, Itaú BBA, and XP praised the deal for boosting investor confidence and growth outlook. Santander’s stock rose significantly following a Q4 profit increase of 75% to R$3.9 billion, pushing its market cap over R$100 billion.

Market Movements

This performance uplifted shares of other banks, with investors anticipating Itaú Unibanco’s results. Azul led the declines in the Ibovespa after announcing a capital increase that might dilute minority shareholders.

Among heavyweights, Petrobras fell with declining oil prices, while Vale rose despite weaker iron ore market signals from China. In the U.S., stocks ended higher, influenced by corporate earnings and economic indicators.

Alphabet and AMD dropped over 7% due to disappointing Q4 results, whereas Nvidia gained over 5% after positive news from Super Micro Computer. U.S. private sector job growth rose in January, but service sector activity slowed down.

Investors also watched for potential trade war escalations with China under Trump’s tariff policies. U.S. indices closed as follows: Dow Jones up 0.71% at 44,873.28, S&P 500 up 0.39% at 6,061.48, and Nasdaq up 0.19% at 19,692.33.

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