FX.co ★ Ibovespa Extends Recovery for 2nd Session

The Ibovespa rose 1.4% to close at 183,447 on Tuesday, extending its gains as local markets rebounded amid heightened geopolitical volatility related to the conflict in Iran. Early optimism, driven by expectations of a swift de-escalation, was tempered by persistent investor caution throughout the session, following reports of continued strikes and lingering uncertainty over the security of the Strait of Hormuz. Financial blue chips underpinned the index’s advance, with gains in major lenders such as Itaú Unibanco and Banco do Brasil helping to counter weakness in the energy segment. Petrobras fell 1.3%, tracking a sharp pullback in Brent and WTI crude prices amid expectations of higher global oil supply. On the domestic front, attention remained focused on the forthcoming release of the government’s fiscal projections, as market participants assess the likelihood of expenditure adjustments in the 2026 budget.