Brazilian equities posted strong gains on Tuesday, supported by higher oil prices and fresh signs of improving domestic economic activity.
According to InfoMoney, the Ibovespa — the benchmark index — advanced sharply after the opening bell.
The move reflected broad-based buying across the index’s 85 constituents, pointing to a widespread pickup in investor confidence.
By 10:48 a.m. Brasília time, the Ibovespa was up 1.30% at 163,976.71 points, the day’s high, after opening at a session low of 161,869.76 points.
The rally followed a previous session in which the index closed up 0.83% at 161,869.76 points.
Services PMI indicates the fastest expansion in over a year
One of the primary domestic drivers was the publication of Brazil’s Purchasing Managers’ Index for the services sector.
According to S&P Global statistics, the PMI increased to 53.7 points in December from 50.1 points in November, marking the quickest rate of expansion in more than a year.
S&P Global reported a significant increase in demand for services, with sales rising for the second consecutive month and at the fastest rate since November 2024.
The figures supported the view that Brazil’s economy is picking up steam as the year comes to a close.
Currency strength and interest rate expectations
Alongside the equity rally, the Brazilian real strengthened against the US dollar, reinforcing the positive tone in local markets.
Commodity prices also provided support. Oil advanced about 0.60% during the session, while iron ore futures in Dalian, China, rose 0.69%.
The combination of firmer commodity prices and encouraging domestic economic data underpinned gains across key segments of the Brazilian stock market.
Petrobras shares edged higher, tracking the rise in oil prices. Preferred shares (PETR4) gained 0.40%, while common shares (PETR3) rose 0.31%.
By contrast, Vale shares (VALE3) slipped 0.14%, despite firmer iron ore prices.
Among the major lenders, performance was broadly positive.
Bradesco common shares led the sector, climbing 2.04% and providing a meaningful contribution to the index’s advance.
Trade balance and geopolitics
Amid a relatively light economic calendar, investors are awaiting Brazil’s trade balance figures for December and the full year 2025, scheduled for release at 3:00 p.m.
This will be followed by a press conference with Vice President and Minister of Industry, Foreign Trade, and Services, Geraldo Alckmin.
According to the median forecast from a Broadcast Projections survey, Brazil’s 2025 trade surplus is expected to reach US$65.0 billion, down from US$74.6 billion in 2024.
For December specifically, the projected surplus is US$7.1 billion, following a positive balance of US$5.84 billion in November.
Investors are also monitoring geopolitical developments following the resignation of Venezuelan President Nicolás Maduro.
‘The main topic in global markets remains Venezuela, but this hasn’t had major implications for asset prices,’ wrote Carlos Lopes, an economist at Banco BV, in a morning note.
Overall, rising commodity prices, improving economic data, and stable geopolitical conditions have contributed to a strong start for Brazilian assets.
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