28.07.202613:48:45UTC+00Ibovespa Jumps on Soft Mid-Month Inflation

The Ibovespa climbed 1% on Tuesday, crossing the 177,000 mark after Brazil’s mid-July inflation reading came in below expectations. Annual inflation eased to 4.52%, undercutting the 4.67% consensus forecast and slowing from 4.8% in June. The softer figure, along with June’s weaker-than-expected data, strengthened bets on a 25-basis-point cut to the Selic rate next week.

Financials outperformed: Itaú, Itaúsa, and Banco do Brasil advanced around 1.5%, while Bradesco gained nearly 2%. Bradesco and Santander, which also rose about 2%, are scheduled to report quarterly results on Wednesday. Utilities were firmer as well, with Axia up nearly 3% and Sabesp adding close to 1.5%. Ambev rose roughly 2% ahead of its earnings release on Thursday.

WEG extended its recent rally, adding 1% after Goldman Sachs upgraded the stock to Neutral from Sell, citing more balanced market expectations. The company also won a contract from ENGIE Brasil to supply generating units for the R$1.2 billion expansion of the Jaguara hydroelectric plant.