FX.co ★ Ibovespa Climbs on Softer Inflation

On Tuesday, the Ibovespa index climbed by 1.7% to exceed 157,500, marking its fifteenth consecutive session of gains and reaching a new record high. This surge was driven by indications of declining inflation and robust corporate earnings. Brazil's headline inflation rate for October stood at 4.68% year-on-year, falling below expectations and nearing the central bank's upper tolerance level of 4.5%. This development bolstered predictions that the Central Bank of Brazil (BCB) might initiate a rate-cutting cycle in the first quarter of the upcoming year. This optimism counterbalanced the cautiously hawkish tone present in the BCB's minutes, which highlighted concerns over inflation in demand-driven services. In corporate highlights, Itaúsa saw a 1.6% increase in shares following a 6% annual rise in net income. Similarly, BTG Pactual's shares increased by 3.2% after it reported an adjusted profit of R$4.54 billion, compared to R$3.21 billion the previous year. B3's shares rose by 2% in anticipation of its forthcoming results release. On a less positive note, Oi was officially removed from listings following its bankruptcy declaration, ending the prior trading session with a significant drop of 35.7%.