The Ibovespa index climbed by 0.3%, reaching a new peak at 141,422 on Friday, contributing to a 6.3% rise in August. This increase was largely driven by investor analysis of US inflation metrics and local political events. The Personal Consumption Expenditures (PCE) index in the US, the Federal Reserve's preferred inflation measure, aligned with expectations, registering a 2.6% year-over-year increase. This result bolstered market speculation regarding an interest rate cut in September, which consequently elevated global risk appetite. Domestically, President Luiz Inácio Lula da Silva's measured remarks concerning the federal police's investigation into alleged money laundering within the fuel sector and his preference for negotiation in the US tariff dispute—rather than immediate retaliatory actions—helped to mitigate risks for publicly traded companies in the refining and retail sectors.
From an economic standpoint, the gross public debt in Brazil rose to 77.6% of GDP in July, up from 76.6% in June, highlighting ongoing fiscal constraints. However, the decline in local interest rates continues to support stock valuations. Within the market, prominent companies reflected these trends: Petrobras increased by 0.4%, Vale by 0.5%, Ambev by 0.8%, Banco do Brasil by 1.6%, Eletrobras by 1.3%, and Santander by 0.9%.
