Ibovespa Surges 2.95% on Soft Mid-Month Inflation

Brazil’s benchmark Ibovespa index rallied 2.95% over the week to close at 173,295.14 points on Friday, June 26, 2026, almost entirely erasing its losses for the month of June. The weekly surge was capped by a 0.76% gain on Friday, driven by a return of foreign capital and a sharp downward shift in the domestic interest rate curve. Investors reacted favorably to cooler-than-expected mid-month inflation data, which has stabilized the outlook for the central bank's Selic rate and made local equity multiples highly attractive.

The rally took off following the release of the IPCA-15 consumer price index, which rose 0.41% in June. This print marked a significant deceleration from the 0.62% increase recorded in May and came in below the market consensus of 0.44%. The benign inflation reading, coupled with supportive domestic monetary policy communication, eased pressure on local bond yields. The positive macro backdrop helped the commercial dollar stabilize, with the USD/BRL closing at R$ 5.18.

Cyclical sectors and major banking institutions led the market's upward momentum. Shares of Itaú Unibanco (ITUB4) climbed 1.29% to R$ 42.24, reflecting strong appetite for large-cap financial firms. Meanwhile, heavyweights in the commodity sector experienced minor corrections at the end of the week. State-run oil firm Petrobras (PETR4) slipped 1.01% to R$ 38.06, and mining giant Vale (VALE3) fell 0.65% to R$ 78.15, though the broader index remained firmly supported by domestic-focused equities.