09.11.202613:37:25UTC+00Brazilian Stocks Rise on Fiscal Reassurance from Government

The Ibovespa climbed nearly 1% on Monday, approaching the 170,000 mark, after the government delivered fresh assurances on fiscal discipline. In a nationally televised address on Sunday, President Lula reaffirmed his commitment to fiscal responsibility, noting his concern over public debt and high interest rates and stating that the government will work to create conditions for cutting the Selic rate.

The statement came amid mounting market pressure for concrete fiscal adjustment measures, following a sharp sell-off in Brazilian assets after Lula’s late-October reelection.

Bank stocks led the advance: Itaú gained more than 1.5%, Bradesco added 2%, and Banco do Brasil (BB) rose 1%. Utilities also traded higher, with Axia up more than 0.5%. Vale advanced 1.5% despite weaker iron ore prices in China.

In contrast, Petrobras fell nearly 2% as the recent international oil rally lost steam on hopes for progress in US–Iran diplomacy.

On the earnings front, Brava (-2%), Caixa (+1%), Itaúsa (+1%), Magazine Luiza (Magalu, +1%), TIM (+1%), and JBS (+2%) are scheduled to report quarterly results today.