Brazil's Ibovespa index advanced for an eighth consecutive session on Friday, closing 0.3% higher at 175,664.62 points amid gains in Petrobras shares, even as investors digested hawkish commentary from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.
The broader market gauge reached an intraday high of 176,420.61 points before paring gains, with total financial volume totaling R$21.8 billion. The weekly gain stood at 2.71%, reducing August's loss to 1.31%, while the index remained up 9.02% year-to-date.
Petrobras led advancers, with both ordinary and preferred shares rising 1.99% each. Financial heavyweights also contributed to the advance: Itaú Unibanco gained 0.23%, Bradesco rose 0.89%, Banco do Brasil added 1.00%, and Santander Brasil climbed 1.83%. Exchange operator B3 advanced 1.97%, supported by a reiterated buy rating from UBS BB analysts, who noted that current share pricing may already reflect operational uncertainties.
The gains came despite a mixed regional backdrop. The S&P 500 fell 0.25% to 7,711.48 points, while the U.S. 10-year Treasury yield rose to 4.724% from 4.672% the prior session. Domestically, the real estate sector index IMOB declined 0.89%, with MRV&CO down 5.12% and Cyrela falling 3.28%. Retailer Magazine Luiza dropped 4.55% after five consecutive gains.
Foreign investor flows into B3 remained positive for a fourth straight session on Aug. 26, with a net inflow of R$1.3 billion, though the monthly balance remained negative at R$18.7 billion. Brazil added 58,568 formal jobs in July, the worst result for the month since 2020, according to Caged data.
Federal Reserve Chair Kevin Warsh emphasized the need for clear progress on underlying inflation toward target, stating that further policy action would be required if momentum proves insufficient.
