Ibovespa Edges Higher as Market Reopens After Delay

The Ibovespa edged higher to trade above 177,500 on Friday after the market opening was delayed due to operational issues. The delay is expected to concentrate orders that would have been executed throughout the morning, increasing the potential for volatility. Petrobras gained nearly 0.5% amid higher oil prices. Major banks also advanced, with Itaú rising more than 1%. Vale (-0.5%) reported 2Q26 earnings and revenue above expectations and raised its 2026 guidance, but posted a 35% decline in profit. Multiplan (+0.5%) is also set to hold a conference call after reporting second-quarter net profit above market forecasts. Meanwhile, Braskem (-2%) recorded lower sales in 2Q26, pressured by weaker demand for key chemicals. On the macro front, Brazil’s gross public debt-to-GDP ratio rose to 81.9% in June from 81.0% in May. The deterioration in fiscal accounts reinforced expectations that borrowing costs may remain elevated.

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.