FX.co ★ Ibovespa Rises as IBC-Br Rebounds and Oil Rally Eases

The Ibovespa advanced nearly 1% on Friday, trading close to 206,000 points, supported by fresh economic activity data and a pause in the recent oil rally. The Central Bank’s Economic Activity Index (IBC-Br) rose 0.3% in August from July, exactly in line with market expectations, and reversed a 0.2% decline in the previous month.

At the same time, easing oil prices provided some relief for credit-sensitive stocks, which had been under pressure amid concerns about energy-driven inflation. Gains were broad-based across the index. Major banks moved higher, though slightly lagging the benchmark, with Itaú advancing 0.5%. Utilities also rose, with Axia up 1%. Petrobras climbed 1% as well.

Among other notable movers, Rede D’Or gained 1%, and retail names also traded higher.

On the political front, a Datafolha poll reinforced the trend seen in recent surveys, indicating a narrowing gap between Flávio Bolsonaro and President Lula. A separate survey by PoderData/AYA showed the two candidates running neck and neck.