Ibovespa Rises on Corporate Earnings

The Ibovespa rose around 0.5% to hover near 173,000 as investors assessed corporate earnings and the minutes of the BCB’s latest meeting. Embraer (+5%) reported Q3 revenue of R$12.1 billion, beating estimates and setting a third-quarter record, although adjusted profit fell 15.6% year-on-year. Itaúsa (+1%) posted a 25% annual increase in net profit. Brava Energia (-2.5%) beat EBITDA estimates but it still posted a quarterly decline, Bradesco BBI maintained its buy rating. Magazine Luiza surged 10% after reporting results in line with expectations. Petrobras (-1%) is due to report later today amid falling oil prices. Banco do Brasil (+1%) reports tomorrow, followed by B3 (+1.5%) and Rede D’Or (+0.5%) on Thursday. Meanwhile, the Copom minutes maintained the previous statement’s hawkish tone, reiterating that unanchored inflation expectations require tighter monetary conditions for longer.

The Ibovespa rose 2.2% to close at 172,236 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 2.9%, and Bradesco added 3.4%. Utilities also advanced, with Axia adding 1.5%. Vale rose 3.2% despite lower Chinese iron ore prices. In contrast, Petrobras fell 0.4% as the international oil rally stalled on US-Iran diplomacy hopes. CSN was up 1.8% after closing an agreement to sell its cement unit to Huaxin. On the earnings front, Caixa (+3.2%), Itaúsa (+3.5%), Magalu (+4.1%), TIM (+2.2%), and JBS (+6.4%) release Q3 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%.