Ibovespa Rises on Corporate Earnings and Copom Minutes

The Ibovespa gained 0.6% to close at 186,754, as investors digested Copom minutes and a wave of corporate earnings. The central bank noted that while higher inflation is unlikely to prevent further rate cuts this year, risks to inflation expectations may limit the pace of easing compared to earlier projections. Banks advanced, with Bradesco (+1.5%) and Banco do Brasil (+1.7%) higher, while Ambev surged over 15% after reporting Q1 net income of R$3.89 billion, up 2.1% year-on-year. After the close, Iguatemi (-1.5%), Itaú (-0.3%), and TIM (-0.5%) are set to report results. Elsewhere, UBS BB raised Sabesp’s (+1.4%) target price to R$38 from R$33.80 but downgraded the stock to neutral, while Petrobras fell 1.4% as oil prices declined despite ongoing Middle East tensions.

The Ibovespa edged up to trade near 186,000 on Tuesday, as investors digested Copom minutes and a wave of corporate earnings. The central bank noted that the increase in inflation is unlikely to prevent more rate cuts this year, although threats to the anchor of inflation expectations may reduce the magnitude of cuts compared to those expected earlier.  Banks advanced, with Bradesco (+1.0%) and Banco do Brasil (+2.0%) higher. Ambev jumped over 10% after reporting Q1 net income of R$3.89 billion, up 2.1% year-on-year. After the close, C&A (+1.3%), Iguatemi (+1.5%), Itaú (+0.2%), Prio (-2.3%), RD Saúde (+1.4%), and TIM (+1.4%) are set to report results. Elsewhere, UBS BB raised Sabesp’s (-0.9%) target price to R$38 from R$33.80 but downgraded the stock to neutral. Petrobras fell over 1% as oil prices declined despite Middle East tensions.

The Ibovespa dropped 0.9% to close at 185,600 on Monday, pressured by rising tensions in the Middle East. Oil prices jumped after reports that two missiles struck a US warship, though a senior US official denied the incident. The IRGC Navy released a map designating parts of the Strait of Hormuz under Iranian military control, warning it may act against vessels that breach its rules, raising concerns over shipping security. With the strait effectively closed, fears of an energy shock fueling global inflation persisted. Banks led losses, with Itaú down 1.8%, Bradesco falling 2.1%, and Banco do Brasil losing 1.3% after weak earnings. Vale dropped 3.1%, while Rede D’Or and WEG fell 1.2% and 1.1%, respectively. In contrast, Embraer rose 2.5% after Brazil’s manufacturing PMI hit a 14-month high, while Marfrig gained 3.3% on progress in its Middle East venture, Sadia Halal. Petrobras added 0.5%, supported by higher oil prices.