Ibovespa nears 1% higher as mid-month inflation cools
Brazil’s Ibovespa rose near 1% to close near 176,000, with inflation easing to 4.25% in the first half of August and bond yields falling as Selic cut expectations improve.
The Ibovespa rose near 1% to trade close to 176,000 on Wednesday amid evidence of slower inflation.
The Brazilian inflation rate was at 4.25% in the first half of August from 4.44% in July, firmly below the central bank's upper tolerance band of 4.5%.
Bond yields fell as lower inflationary pressures boosted expectations for a Selic rate cut.
Financials traded higher, with Itaú and Itaúsa up about 1%, while Bradesco rose more than 1.5% and Banco do Brasil gained nearly 2%.
Utilities also advanced, with Sabesp rising over 2.5% after Itaú BBA reiterated its buy rating following the stock’s slump after its quarterly results.
Vale rose over 0.5% on higher iron ore prices.
In contrast, Petrobras lost nearly 0.5% as oil prices fell following reports that Iran and Oman discussed establishing a “temporary joint maritime corridor” in the Strait of Hormuz.