Ibovespa Trades Lower Ahead of Earnings

The Ibovespa slipped 0.2% to close at 185,929 on Tuesday, pulling back from recent highs as investors digested January inflation data and a dense corporate earnings calendar. Brazil’s IPCA rose 4.44% year on year in January, accelerating from 4.26% in December and broadly matching expectations, reinforcing caution around the pace of monetary easing. Index heavyweights were mixed, with Petrobras up 0.5% ahead of the release of its fourth quarter and full year 2025 production and sales figures, while Vale edged slightly lower alongside weaker steelmakers. Financial stocks were mixed, as Banco do Brasil and Bradesco posted modest gains, while B3 declined. On the earnings front, BB Seguridade climbed nearly 3% after reporting results, while Motiva slipped earlier in the session. Elsewhere, consumer and growth names underperformed, with Magazine Luiza, Lojas Renner, and CSN among the laggards, reflecting sensitivity to interest rate expectations following firmer inflation data.

The Ibovespa rose 0.5% to trade below 186,000 on Tuesday, as investors focused on Brazil’s consumer inflation data and a busy earnings calendar. Brazil’s CPI rose 4.44% year-on-year in January 2026, up from 4.26% in December and broadly in line with expectations of 4.43%. Meanwhile, Petrobras (+0.1%) is set to publish fourth-quarter and full-year 2025 oil and fuel production and sales data after market close. Earlier in the session, Motiva (-1%) and BB Seguridade (+2.8%) hold earnings calls, while Suzano (+0.1%) and TIM (+0.6%) report results after the close.

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.