Brazilian Stocks Rebound After Election Rout
The Ibovespa rose around 0.5% to hover near 177,500 on Tuesday, rebounding after plunging 13.7% in the previous session following President Lula’s re-election, with corporate earnings in focus. Gerdau fell 1% despite beating EBITDA estimates. Itaú BBA maintained a positive outlook for its operating performance in Q4, while Bradesco BBI viewed the results favorably but retained a neutral rating, citing a positive outlook for the coming quarters. Santander (+0.1%) reports earnings Wednesday. Ambev (+1%) and Vale (-1.5%) report Thursday, both outperformed the index during Monday’s rout. Axia gained 1% after tumbling 12.4% on Monday, following news that it had signed a mandate letter with IDB Invest to structure potential financing for transmission investments. Petrobras fell 1% as oil prices declined, extending losses after dropping 8.2% on Monday. Meanwhile, several banks, including Morgan Stanley and Citi, downgraded Brazilian assets following the post-election selloff.
The Ibovespa rose around 0.5% to hover near 177,500 on Tuesday, rebounding after plunging 13.7% in the previous session following President Lula’s re-election, with corporate earnings in focus. Gerdau fell 1% despite beating EBITDA estimates. Itaú BBA maintained a positive outlook for its operating performance in Q4, while Bradesco BBI viewed the results favorably but retained a neutral rating, citing a positive outlook for the coming quarters. Santander (+0.1%) reports earnings Wednesday.
Ambev (+1%) and Vale (-1.5%) report Thursday, both outperformed the index during Monday’s rout. Axia gained 1% after tumbling 12.4% on Monday, following news that it had signed a mandate letter with IDB Invest to structure potential financing for transmission investments. Petrobras fell 1% as oil prices declined, extending losses after dropping 8.2% on Monday. Meanwhile, several banks, including Morgan Stanley and Citi, downgraded Brazilian assets following the post-election selloff.