28.08.202520:25:25UTC+00Ibovespa Closes Near Record Highs

On Thursday, the Ibovespa index rose by 1.3%, reaching 141,049 and closing in on its all-time high. This surge was driven by a decrease in policy-rate risks abroad, a more favorable inflation outlook domestically, and specific local catalysts that have collectively reduced the discount rates on Brazilian earnings. Additionally, these factors attracted new investments into local equities. In the United States, the upward revision of Q2 GDP to 3.3%, along with robust earnings from Nvidia, has led markets to anticipate a forthcoming easing cycle from the Federal Reserve. This anticipation has reduced global term premiums and enhanced the attractiveness of high-beta emerging market returns. On the domestic front, the IPCA-15 inflation rate decelerated to 4.95% in August, easing the path for interest rate cuts in Brazil. This has advanced expectations for policy easing, leading to lower local discount rates and increased valuation multiples for sectors sensitive to interest rates. Simultaneously, a comprehensive federal police operation targeting fuel-sector fraud dismantled a layer of informal competition, which gave an immediate boost to companies adhering to compliance, including Ultrapar, Raízen, and Vibra.