Ibovespa Rises on Itaú Earnings

The Ibovespa surged 1.8% to close at 186,241 on Monday, extending its rally to fresh record highs as strong gains in heavyweight banks, commodities and growth names reinforced a broad-based risk-on tone. Financials led the advance, with Banco Santander Brasil surging 6%, Banco do Brasil up 2% and Bradesco higher by 1.4%, as easing domestic rate expectations and resilient earnings momentum continued to support the sector. Commodity-linked stocks also provided firm support, with Vale rising 1.9% on stable iron ore prices and Petrobras gaining 2% as oil prices steadied after recent volatility tied to Middle East developments. Industrials and growth stocks added to the upside, led by WEG, Embraer and Magazine Luiza, the latter surging more than 7% as appetite for higher-beta names improved. Elsewhere, B3 advanced 3.4% alongside the broader market rally, while utilities and defensives lagged modestly.

The Ibovespa edged higher to trade above 183,000 on Monday, as investors focused on corporate earnings. Later in the day, BB Seguridade (+0.3%), Motiva (+0.2%) and São Martinho (-0.3%) are set to report results, while Suzano (+1%), Banco do Brasil (+0.2%) and TOTVS (+0.2%) release earnings later in the week. BTG Pactual fell 2.4% after reporting fourth-quarter adjusted net profit of nearly R$4.6 billion, up 40.3% year-on-year but in line with forecasts, and underwhelming to investors. Petrobras rose 0.2% as oil prices steadied after earlier losses amid easing supply concerns following renewed US-Iran talks in Oman. Vale gained 1% on stable iron ore prices.

The Ibovespa closed 0.5% higher at 182,950 on Friday, recovering earlier losses and extending recent gains as strength in select cyclicals and domestic stocks offset lingering caution around banks. Financials remained a drag, with Bradesco slipping again after its cautious 2026 guidance continued to outweigh solid recent results, while Banco do Brasil and Santander Brasil also eased. In contrast, Itaúsa jumped nearly 3% and B3 surged over 4.5%, providing support to the index. Petrobras edged lower alongside choppy oil prices ahead of US Iran talks in Oman, while Vale also declined despite recent optimism from brokerage upgrades. Elsewhere, Eletrobras gained over 1% and Embraer added modestly. On the macro front, the Finance Ministry slightly trimmed its 2026 growth forecast while raising its inflation projection, keeping the policy backdrop mixed even as the index finished the session up about 0.5%.