Brazil's Ibovespa touches 190,000 points after foreign inflows and Bank of America rate cut forecast
Blue chip stocks surged to push the Brazilian benchmark close to a 190,000 point high as foreign capital returned. The Bank of America upgraded Brazil on expectations for deeper interest rate cuts.
Brazil's main stock index, the Ibovespa, climbed significantly on Tuesday as major companies helped it reach nearly 190,000 points. Vale, Petrobras, Itaú, and Axia Energia advanced during a session driven by foreign capital inflows, high commodity prices, and falling bond yields. These five blue-chip stocks account for approximately 37.5% of the theoretical Ibovespa portfolio, with Vale alone contributing over 11 percent and two Petrobras classes adding nearly 13 percent. The market previously closed at 187,366 points after briefly touching 189,487 points. Foreign investment flowed into the B3 exchange in September, posting a positive balance of R$ 3.9 billion across its first three trading days. Because foreign money prioritizes liquid assets, capital entered mining, petroleum, banking, and energy sectors immediately. The Bank of America raised Brazilian equities to overweight status, citing projections for interest rate cuts to 11.25 percent by the end of 2027, down from a previous estimate of 12.75 percent.
