FX.co ★ Ibovespa Rises on Fiscal Reassurance and US Stocks Rebound

The Ibovespa advanced about 1.5% on Friday to trade near 168,500, supported by reassuring comments from President Lula on fiscal policy and by a rebound on Wall Street that helped offset the previous session’s tech-led selloff in the US.

Lula reiterated that his administration remains committed to fiscal responsibility while also pursuing social priorities, amid mounting pressure for concrete adjustment measures and following the decline in Brazilian assets after his late-October reelection.

Sentiment was further buoyed by a JPMorgan report stating that third-quarter results underscored the resilience of emerging-market companies despite the recent correction in AI-related stocks and persistent global macroeconomic uncertainties. According to the bank, the earnings season continues to underpin the outlook for emerging-market equities, and it is maintaining an above-average allocation to markets such as Brazil.

Gains on the local bourse were broad-based. Sabesp climbed nearly 7% after reporting a 9% year-on-year increase in Q3 revenue. Among financials, Bradesco added about 3%, Banco do Brasil almost 4%, while mining heavyweight Vale advanced close to 2%.