Ibovespa Rises Despite Trading Delay

The Ibovespa rose 0.5% to close at 177,999 on Friday as investors digested Vale's earnings and Santander's tender offer to repurchase shares in Brazil. Santander surged 15.2% following the announcement. Vale added 0.2% after reporting 2Q26 earnings and revenue above expectations and raising its 2026 guidance, despite a 35% drop in profit. Petrobras extended gains, rising 1.3% as oil prices climbed amid renewed tensions between the US and Iran. WEG (+0.8%), Sabesp (+1.1%), Rede D'Or (+0.6%), and Embraer (+0.9%) also advanced. Trading opened later than scheduled due to an operational failure at the stock exchange, raising concerns about market reliability, particularly among foreign investors. On the macro front, Brazil's gross public debt-to-GDP ratio rose to 81.9% in June from 81.0% in May, reinforcing expectations that borrowing costs may remain elevated.

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.