FX.co ★ Ibovespa Rises Nearly 1% on Political Easing

On Monday, the Ibovespa index climbed nearly 1% to approach the 159,000 mark, recovering from a sharp decline on Friday. This positive movement followed indications that Senator Flávio Bolsonaro might withdraw from the presidential race, thus reducing political uncertainty. Investor sentiment was additionally buoyed by the anticipation of a 25 basis point interest rate cut by the Federal Reserve expected on Wednesday, which increased risk appetite. The market had previously experienced sell-offs after Jair Bolsonaro announced his son as a potential candidate for 2026. However, Flávio Bolsonaro intimated on Sunday that he might reconsider, hinting that any withdrawal could be contingent upon conditions, possibly linked to the family’s efforts to secure amnesty for those involved in the events of January 8, 2023. In equities, Vale saw a 0.7% increase in line with stronger iron ore prices, while Petrobras shares rose by 0.8% amid speculation that it might assume control of Braskem’s operations, thereby boosting Braskem's stock by 1.5%. Notably, major banks performed well, with Bradesco shares rising by 1.1% and Itaú gaining 0.9% following the acquisition of stakes held by GPA, which climbed 1.3%, Casas Bahia, which showed no change, and Assaí, which increased by 0.9%, in Itaú CBD.