Brazilian Stocks Rise on Fiscal Reassurance from Government

The Ibovespa rose near 1% to hover close to 170,000 on Monday after fiscal reassurance from the government. In a national address on Sunday, President Lula reaffirmed his commitment to fiscal responsibility, stressing that public debt and high interest rates concern him and that the government will act to create conditions for reducing the Selic rate. The government has faced market pressure to announce fiscal adjustment measures after Brazilian assets plunged following Lula’s late-October reelection. Major banks gained, Itaú rose over 1.5%, Bradesco 2%, and BB 1%. Utilities also advanced, with Axia adding more than 0.5%. Vale rose 1.5% despite lower Chinese iron ore prices. In contrast, Petrobras fell nearly 2% as the international oil rally stalled on US-Iran diplomacy hopes. On the earnings front, Brava (-2%), Caixa (+1%), Itaúsa (+1%), Magalu (+1%), TIM (+1%), and JBS (+2%) release quarterly results today.

The Ibovespa rose 1.4 to close at 168,498 on Friday after President Lula reassured markets on fiscal adjustment and as spillover pressure from the previous session’s tech-driven US rout eased with a Wall Street rebound. Lula reiterated that his government is committed to fiscal responsibility while also considering social responsibility, amid pressure to announce adjustment measures and a drop in Brazilian assets after his late-October reelection. The index was further supported by a JPMorgan report noting that Q3 results reinforced the resilience of emerging-market companies despite the recent AI-stock correction and global macroeconomic uncertainties. JPMorgan said earnings season continues to support the outlook for emerging-market equities and maintained above-average exposure to countries such as Brazil. Gains were broad-based. Sabesp jumped 7% after a 9% annual rise in Q3 revenue, Bradesco rose 3%, BB gained 4%, and Vale added 1.9%.

The Ibovespa rose 1% to hover near 168,000 on Friday as spillover pressure from the previous session’s tech-driven US rout eased and Wall Street rebounded. The index was further supported by a JPMorgan report noting that Q3 results reinforced the resilience of emerging-market companies despite the recent correction in AI-related stocks and global macroeconomic uncertainties. JPMorgan said the earnings season continues to support the outlook for emerging-market equities and maintained above-average exposure to countries such as Brazil. Meanwhile, Democratic wins in the US could create an opportunity for Brazil in negotiations over US trade tariffs. Major banks posted gains, with Itaú, Bradesco and BB up more than 2% each. Utilities also advanced, with Sabesp jumping nearly 5% after reporting a 9% annual rise in Q3 revenue. Other notable gainers included Rede D’Or (+3%) and Embraer (+1%).