FX.co ★ Ibovespa Rises on Prospects of Fiscal Adjusment

The Ibovespa climbed close to 1% on Wednesday, trading above 172,500 points after the government’s economic team submitted a preliminary fiscal adjustment proposal to Congress. Though details are still limited, the move marks the first concrete indication of an effort to rebalance public accounts since President Lula’s reelection.

Credit-sensitive shares outperformed. Among the major banks, Itaú advanced more than 1%, Bradesco gained over 1.5%, and Banco do Brasil added more than 0.5% ahead of its earnings release. Other financial names also moved higher, with B3 rising more than 2.5% and Itaúsa nearly 1.5%.

Utilities traded in positive territory as well, with Axia up more than 1%.

In contrast, Petrobras dropped nearly 3% following its third-quarter results. The company reported net income of R$39.75 billion, an increase of 21.5% year-on-year but below market expectations of R$47.02 billion.

On the upside, Vivo gained 4%, starting the fourth quarter on a strong note, supported by higher sales tied to the launch of new Apple smartphone models. Rede D’Or added 3% ahead of its earnings report due tomorrow.