Brazilian Stocks Rally on Commodity Strength

The Ibovespa edged up to trade above 192,000 on Wednesday hitting new all-time highs as higher oil and iron ores quotes boosted Petrobras and Vale. Oil prices rose amid lingering concerns over a potential US-Iran military conflict, lifting Petrobras nearly 1%. Likewise, Vale gained more than 1.5%. In contrast, WEG lost about 1% after it reported a net profit of R$1.59 billion in the fourth quarter of last year, a 6.3% decline compared to the same period a year earlier.

The Ibovespa rose 1.4% to close at a record 191,490 on Tuesday, as markets shrugged off earlier volatility from US trade policy shifts. Petrobras climbed 2.3% on firming global oil prices and strong cash flow outlooks, while the utilities sector surged with COPEL leading at 3.1%. Consumer sentiment also provided tailwinds after the Focus Bulletin’s annual inflation forecast dropped for the seventh straight week to 3.91%. In contrast, steelmaker Gerdau fell 2.2% after reporting a 21% decline in 2025 net income to R$3.4 billion, weighed down by record steel imports into Brazil despite strong North American performance. Meanwhile, retailers were mixed as investors processed the impact of the new 15% US global tariff, though the Brazilian real hit its strongest level since May 2024. After the bell, market attention shifted to earnings from C&A, GPA, and Iguatemi, while the broader market remains buoyed by expectations of potential interest rate cuts starting in March.

The Ibovespa rose nearly 1% to over 190,000 on Tuesday, approaching a record high, on support from companies in the oil sector. Petrobras climbed 1.5% as crude oil benchmarks continued to rise ahead of new US-Iran nuclear talks this week. The utilities sector also contributed to the gain, with Axia up more than 1%. In contrast, Gerdau fell over 3% after reporting a 21.1% decline in net profit for 2025 compared to 2024. Meanwhile, investors are awaiting earnings from C&A (+0.5%), GPA (+3%), Iguatemi (+0.5%), and ISA Energia (+0.4%) after market close.