2025.08.2720:22:32UTC+00Ibovespa Rises to Early-July Highs

On Wednesday, the Ibovespa index increased by 1%, closing at 139,206, its highest point since July 8. This rise was driven by a stronger domestic macroeconomic environment, more defined policy signals, and supportive corporate flows, which collectively reduced the discount on Brazilian equity cash flows. Brazil's mid-month inflation figure showed signs of easing, with the 12-month IPCA-15 index falling to 4.95% in August. This decline indicates progress toward meeting the central bank's target, allaying immediate concerns about inflation, and diminishing the necessity for prolonged policy tightening. Central Bank President Gabriel Galípolo reassured that both the market mechanisms and foreign exchange systems are operating efficiently. His commitment to vigilance reduced policy uncertainty, allowing investors to anticipate a more stable monetary path. In the corporate sector, major banks made significant gains, with Banco do Brasil increasing by 1.2%, Santander by 0.9%, and Itaúsa by 1.4%. Additionally, Rede D'Or São Luiz rose by 1.8%, and Companhia Saneamento advanced by 2.6%.