FX.co ★ Ibovespa Sets Record High

The Ibovespa index increased by 0.4%, reaching a new high of 161,755 points on Wednesday. This surge was driven by both global and domestic factors that enhanced earnings forecasts for Brazil's major companies. A surprise decline in ADP's private payroll figures increased the likelihood of an imminent interest rate cut by the Federal Reserve, subsequently lowering global discount rates and attracting investors into emerging market equities. Furthermore, a diplomatic breakthrough following a high-level discussion between President Lula and former President Trump, along with the relaxation of certain U.S. tariffs, alleviated significant policy risks for exporters and the agribusiness sector, making it easier to predict cash flows from these areas. Company-specific developments also played a role, as Vale's shares rose by 3.4% after revising its 2026 output projections. Additionally, the attainment of record levels in national oil production in October bolstered the short-term revenue outlook for mining and energy companies. Consequently, Petrobras saw a 1% increase, Ambev went up by 1%, and Eletrobras advanced by 1.3%. However, major banks limited the overall gain, with Bradesco experiencing a decline of 2.7%.