Brazilian equities and the dollar showed limited movement on Wednesday as investors balanced strong corporate earnings against rising geopolitical risks in the Middle East.
The mini Ibovespa futures contract closed at R$177,489, within a session range of R$174,500 to R$180,000, reflecting modest buying interest after Nvidia’s fiscal 2028 revenue growth forecast of 70% exceeded consensus expectations of 44%. The tech giant’s upbeat outlook helped underpin global risk sentiment, offsetting concerns over escalating tensions in the region.
The U.S. dollar traded near R$5.1503 on Tuesday’s session close, consolidating within a low-volatility band between R$5.05 and R$5.25. The exchange rate’s stability came as Brent crude oil held above $87 per barrel and gold futures slipped 0.87% to $4,617.50 per troy ounce, with geopolitical developments in the Strait of Hormuz adding to market caution.
In domestic data, Brazil’s IPCA-15 inflation index fell 0.40% in August, bringing the 12-month rate to 4.24%, below the central bank’s target ceiling. The Ministry of Treasury maintained its defense of a 60-day extension to the 12% oil export tax, a move that has drawn scrutiny from private oil companies. Meanwhile, congressional leaders scheduled a vote for next week on a provisional measure addressing the expiration of the small package import tax.
Global markets remained sensitive to developments in the Middle East, where Russian President Vladimir Putin’s threats to escalate the conflict in Ukraine and U.S. President Donald Trump’s rhetoric on tariffs against Canada added to investor unease. Analysts noted that while corporate earnings provided a temporary lift, broader macroeconomic and geopolitical risks continued to weigh on market sentiment.
The Ibovespa index closed nearly flat at 174,771.00, up 0.11%, as gains in technology-linked stocks were tempered by caution in energy and industrial sectors. The session’s limited volatility reflected a market awaiting further clarity on both corporate outlooks and geopolitical developments.
