Brazil’s Ibovespa index advanced 3.05% on Wednesday, closing at 185,205.09 points, as investors reacted to shifting political polling and developments in the Supreme Federal Court’s handling of the Master case. The gains contrasted with modest advances in U.S. equity benchmarks, with the Dow Jones up 0.56%, the S&P 500 rising 0.46%, and the Nasdaq gaining 0.45%.
The real strengthened 0.92% against the dollar, with the U.S. currency quoted at R$5.1084 at the close. The move followed softer-than-expected U.S. labor data, as the ADP employment report showed just 38,000 jobs added in August, below market expectations. The Federal Reserve’s latest Beige Book described economic activity as expanding modestly with moderate price pressures, easing concerns over aggressive monetary tightening.
Domestic political sentiment also shifted as polling firm Quaest indicated a tightening race between President Lula and Senator Flávio Bolsonaro in a potential second-round scenario. The narrowing margin contributed to increased buying in blue-chip stocks, particularly state-controlled giants Petrobras PN (PETR4), which rose 2.84% to R$48.20, and Vale ON (VALE3), which gained 3.19% to R$80.55.
Corporate news also drove individual stock movements. Magazine Luiza (MGLU3) surged 16.88% after announcing a commercial partnership with Mercado Livre, while Azzas (AZZA3) climbed 11.28% following a corporate reorganization agreement between Arezzo and SOMA. Broadcom’s shares fell more than 3% in extended trading after the chipmaker projected fourth-quarter revenue slightly below consensus estimates.
Investors closely monitored the Supreme Federal Court’s handling of the Master case, with court president Edson Fachin signaling potential measures while the Prosecutor General’s Office defended the annulment of a Federal Police report. The case’s trajectory remains a key risk factor for market sentiment. Oil prices edged higher amid renewed geopolitical tensions, with Donald Trump threatening action against Iran despite reports of record vessel traffic through the Strait of Hormuz.
