FX.co ★ Ibovespa Rises to Fresh Record

On Wednesday, Brazil's Ibovespa climbed by over 1.5%, marking a new record by exceeding the 169,000 threshold, and outpacing equity indexes in major global economies, driven by robust performance across all major sectors of the exchange. The financial sector spearheaded the gains, successfully reversing losses from prior sessions, as they capitalized on a sharp drop in domestic long-term bond yields. This decrease in benchmark borrowing costs occurred even as recent polls indicated favorable prospects for President Lula's re-election for a fourth term, typically exerting pressure on domestic bonds due to his fiscal expansion strategies. Among the significant movers, Itau, Bradesco, and Itausa each surged by more than 2.5%, with Banco do Brasil rising by 1%. Meanwhile, despite a subdued session for their respective commodities, both Vale and Petrobras recorded a 2% increase, underscoring the growing enthusiasm for equities among domestic investors.