Ibovespa rises 0.3% as Brazil jobs, inflation data cool

The Ibovespa added 0.3% to close at 175,665 on Friday, erasing earlier losses and extending its winning streak to eight consecutive sessions.

Brazil created 58,568 formal jobs in July, well below forecasts of 112,000 and down sharply from 145,161 in June.

Meanwhile, the PPI rose 1.94% year-on-year in July, slowing from 2.47% in June, while the IGP-M fell.

Softer labor and inflation data could allow the BCB to continue its 25-basis-point easing cycle, supporting credit-sensitive stocks.

Financials gained, with Bradesco and Itaúsa adding 0.9% and Banco do Brasil rising 1%.

B3 gained 2% after JPMorgan said emerging-market equity funds recorded higher inflows, with Brazil recovering after four weeks of heavy outflows.

Utilities also advanced, with Axia rising 0.9%.

Petrobras climbed 2% after Bradesco BBI upgraded the stock to Outperform from Neutral.

In contrast, Vale shed 0.7% after a trial concerning the taxation of profits earned by the miner’s foreign subsidiaries was suspended.