Ibovespa Jumps After Copom Minutes

The Ibovespa rose 1.6% to close at a fresh record of 185,674 on Tuesday, as optimism around the start of Brazil’s easing cycle and strong commodity performance outweighed late-session volatility. Minutes from the Copom reinforced expectations for a 0.5pp rate cut in March, with policymakers signaling greater confidence in the transmission of tight monetary policy, easing inflation risks, and improved anchoring, even as a still-tight labor market warrants caution. Heavyweights led the advance, with Vale jumping 4.9% on stronger iron ore prices and renewed investment optimism in Brazil’s mining sector, while Petrobras gained 1.4% alongside firmer oil prices. Banks were mixed but broadly supported by the prospect of lower funding costs, while utilities and domestic cyclicals advanced on rate-sensitive demand expectations.

IBOVESPA increased to an all-time high of 186461.00 Index Points. Over the past 4 weeks, Bovespa Index gained 15.12%, and in the last 12 months, it increased 48.9%.

The Ibovespa climbed nearly 2% to a record of 186,000 on Tuesday as minutes from the Brazilian central bank's next meeting consolidated the view of a rate cut in the upcoming decision. Policymakers said the magnitude and duration of the expected easing cycle will be defined over time as new data are incorporated, while reaffirming their commitment to the 3% inflation target. Santander rose 2% while Itau and Bradesco advanced 1% ahead of their earnings this week, also supported by the outlook of favorable credit costs for consumers following the BCB minutes. Utilities also advanced, with Axia and Sabesp up nearly 2%. Petrobras rose more than 1% on firmer oil prices, while Vale jumped 2.5%, rebounding from sharp losses in the previous session.