Brazil's benchmark stock index drew support from lower oil prices, easing inflation concerns and reinforcing expectations the BCB will trim its policy rate from 14.25% on Wednesday.
Brazil's Ibovespa rose nearly 1% on Tuesday, moving above the 179,000 level as lower oil prices and stronger expectations of a Selic rate cut supported risk appetite. Crude retreated after US President Donald Trump canceled planned strikes on Iran to revive negotiations, reducing worries that higher energy costs could feed inflation. That backdrop strengthened bets that the BCB (Brazil's central bank) will lower its benchmark interest rate from 14.25% on Wednesday. Financial stocks led the advance, with Itaúsa up about 1% and B3 gaining more than 2%, while BB Seguridade added over 1% after posting a 3.2% annual rise in net profit. Vale jumped about 2.5% as iron ore prices firmed, utilities including Auren and Sabesp gained around 1.5% each, and Ambev and WEG rose about 1%. Petrobras slipped 1% alongside the drop in oil. Investors were also waiting for earnings from Itaú, Gerdau, RD Saúde and Prio after the close.