Brazil’s benchmark B3 index, the Ibovespa, closed 1.55% higher at 174,576.80 points on Tuesday, extending its winning streak to five sessions. Trading volume reached R$28.67 billion, with the gauge peaking at 174,784.92 points and dipping to 171,178.87 points during the session.
Financial stocks led advancers, with Banco do Brasil (BBAS3) surging 5.22%, Itaú Unibanco (ITUB4) up 1.83%, Bradesco (BBDC4) climbing 3.13%, BTG Pactual (BPAC11) gaining 3.04% and Santander Brasil (SANB11) adding 0.13%. Mining giant Vale (VALE3) advanced 2.04%, as CEO Gustavo Pimenta highlighted potential to expand iron ore output by up to 50 million tons annually if exploration in the Carajás block C region progresses.
The gains followed a net inflow of R$1.76 billion in foreign capital into Brazilian equities on Aug. 21, though month-to-date outflows remained at R$21.44 billion, according to B3 data. The U.S. 10-year Treasury yield eased to 4.6209% from 4.704% on Monday. Brent crude futures fell 3.89% to US$88.58 per barrel.
Braskem (BRK5/BRKM5/PNA) slumped 13.11% after filing for extrajudicial recovery to restructure US$10.9 billion in debt. B3 announced Braskem’s shares would be excluded from stock exchange indices at their closing price following regular trading. Petrobras (PETR4) declined 1.8% alongside weaker oil prices, while Hapvida (HAPV3) rose 0.94% despite Squadra’s disclosure of a reduced position in the insurer.
Retail and interest-sensitive names also outperformed, with Magazine Luiza (MGLU3) up 9.13%, Assaí (ASAI3) advancing 7.82%, Cury (CURY3) gaining 7.49% and Localiza (RENT3) rising 5.79%. Usiminas (USIM5) fell 2.11% after its controlling shareholder Ternium denied plans to cancel the company’s open capital registration, while CSN (CSNA3) dropped 1.55% and Gerdau (GGBR4) added 1.4%.
Market participants cited expectations ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole conference on Friday, with Willian Queiroz of Blue3 Investimentos noting focus on signals for global interest rate direction. Thiago Pedroso of Criteria said sustained foreign inflows could reinforce the Ibovespa’s recent recovery beyond a technical rebound.
