FX.co ★ Ibovespa Jumps After Holiday

The Ibovespa jumped more than 1.5% on Tuesday, trading near the 188,000 level after Monday’s holiday, with gains spread broadly across sectors. Petrobras advanced over 1.5% as oil prices climbed in the wake of attacks on energy infrastructure in Saudi Arabia amid renewed hostilities in the Middle East. Vale added around 2%, supported by higher iron ore prices in China, driven by reduced shipments and expectations of a seasonal recovery in Chinese demand.

On the political front, a BTG/Nexus poll indicated a technical tie between Flávio Bolsonaro and President Lula in a potential presidential runoff, though Flávio edged into a numerical lead of one percentage point. A Quaest survey released on Monday likewise showed both candidates tied at 41% in a second-round scenario. Markets tend to view Flávio Bolsonaro as more fiscally conservative, a stance that resonates against a backdrop of elevated interest rates and sluggish business activity.

In the banking sector, major lenders advanced, with Itaú climbing more than 2% and Bradesco rising over 1.5%. Utilities also traded higher, with Axia up nearly 2%. Among other notable movers, WEG and Rede D’Or each gained around 2%.