FX.co ★ Ibovespa Struggles for Direction

On Wednesday, the Ibovespa index experienced a modest increase of 0.5%, closing at 137,128. This growth was driven by a robust performance in the commodity markets, targeted corporate announcements, and a clearer policy environment that boosted foreign interest in Brazilian stocks. The rise in oil prices, reaching a seven-week peak, pushed Petrobras shares up by 0.8% and supported the exploration services sector. Additionally, a positive assessment by UBS BB on Santander caused a 4.4% surge in the bank's stock, sparking a broader rally in the financial sector as investors anticipated more favorable lending conditions following the government's adjustment of the IOF. Furthermore, a tentative agreement between the US and China—aimed at reviving last month's tariff truce from Geneva and lifting rare-earth restrictions—boosted the outlook for Vale and other major players in the mining industry.