FX.co ★ Brazilian Stocks Rally as Yields Fall

The Ibovespa index surged by more than 1% on Wednesday, nearing the 184,000 mark, as market participants adjusted their expectations to reflect steady interest rates from both Brazil's central bank and the US Federal Reserve. The reduction in government bond yields in Brazil instigated a boost in the financial sector, with stocks such as Itaú appreciating by 1.6%, Bradesco advancing 0.5%, and Banco do Brasil increasing by 2%. The utilities sector also experienced gains, led by Axia with an increase of over 1%. Meanwhile, Petrobras saw a rise of more than 2% thanks to escalating oil prices. Vale's shares became nearly 1% more valuable following the release of its fourth-quarter production data for 2025, revealing that iron ore production reached 336.1 million tonnes, representing a 2.6% growth from the previous year. Embraer advanced by 0.6% after announcing a record backlog of US$31.6 billion for the final quarter of 2025, a 1% increase from the previous quarter, with aircraft deliveries experiencing a 21% year-on-year rise to 91 units, continuing a trend of five successive quarters of record deliveries. Among other notable performers were Ambev and Rede D’Or, which gained 1% and 1.8%, respectively.