Ibovespa Closes Higher as Earnings Roll In

The Ibovespa gained 1.9% to close at 177,159 on Thursday as investors assessed another round of corporate earnings. Vale rose 1.4% ahead of its second-quarter results after the market close. Motiva jumped 5.2% after delivering a positive earnings surprise, particularly on capital expenditures. Other notable gainers included Petrobras (+2%), Axia (+3.6%), and WEG (+2.6%). Among major banks, Banco do Brasil gained 2% and Itaú rose 2.2%, while Santander fell 1.5%, extending losses after its second-quarter results. Ambev edged up 0.4% despite reporting stronger profit, as revenue and EBITDA missed expectations. Usiminas plunged 9.2% despite tripling quarterly profit as investors focused on weaker forward guidance. On the data front, Brazil's unemployment rate fell to 5.4% in the quarter ending in June, reinforcing labor market resilience and supporting expectations that the BCB may soon pause its rate-cutting cycle.

The Ibovespa edged up to trade above 174,000 on Thursday as investors assessed another round of corporate earnings. Vale (+2%) is set to report second-quarter results after the market close. Other notable performers included Axia (+1.5%), WEG (+1.5%) and Rede D'Or (+2%). Ambev fell 3% despite posting stronger second-quarter net income, as revenue and EBITDA missed market expectations. Santander Brasil slipped 0.6% after disappointing second-quarter results prompted JPMorgan to downgrade the stock to Neutral. Meanwhile, Bradesco dropped 3% after announcing a capital increase of up to R$10 billion, with controlling shareholders committing to subscribe up to R$8 billion. On the data front, Brazil's unemployment rate fell to 5.4% in the quarter ending in June, reinforcing signs of a resilient labor market. Recent BCB communications have highlighted greater upside than downside risks to inflation, suggesting the current interest rate-cutting cycle may soon pause.

The Ibovespa fell 1.5% to close at 173,885 on Wednesday as investors digested stronger-than-expected Brazilian labor market data and the Fed's policy decision. Brazil created a net 145,161 formal jobs in June, above market expectations of 115,000, reinforcing the resilience of the labor market and supporting expectations of a more hawkish BCB. The Fed left interest rates unchanged, as expected, though three FOMC members favored a rate hike, adding to concerns that global interest rates could remain higher for longer. Financials declined, with Itaú down 2.4%, Bradesco losing 2.2%, Itaúsa shedding 2%, and B3 falling 4.2%. Santander tumbled 6.9% after missing ROE expectations. Sabesp dropped 6% after the meeting to vote on its proposed merger with Emae was postponed. Ambev erased earlier gains to close 1.2% lower following its earnings-driven rally. Vivo and TIM extended losses, falling 3.8% each on weak operating results. Meanwhile, Petrobras gained 1.9% on higher oil prices.