Brazil's Ibovespa index closes at all-time high

Brazil's Ibovespa index closes at all-time high

Brazil's stock market experienced a significant rally on Thursday, August 28, as the Ibovespa index reached an all-time intraday high. The benchmark stock index closed up 1.32% at 141,049 points, marking a notable gain despite the broader market's mixed performance. The session was characterized by a stronger real and a drop in long-term interest rates [1].

The day's momentum was fueled by a pre-market poll indicating São Paulo Governor Tarcísio de Freitas (Republicans Party) leading President Lula (Workers’ Party) in a potential second-round matchup in the 2026 presidential election. This poll provided investors with a sense of political uncertainty and potential change in power, boosting market confidence [1].

The rally saw blue-chip stocks, particularly banking shares, perform well. Bradesco's common stock rose by 2.35%, while Banco do Brasil gained 2.04%, marking its third consecutive session of gains. Fuel distributors also benefited from a Federal Police operation targeting the drug cartel PCC's involvement in the sector, with Ultrapar and Vibra surging by 8.08% and 4.97%, respectively [1].

In fixed income, a sustained drop in yields materialized after the Treasury's auction of fixed-rate bonds. The auction offered 18.3 million securities, fewer than expected, triggering a sharper decline along the curve. This auction was seen as a positive signal by the market, leading to a decrease in long-term interest rates [1].

While Brazil's stock market performed well, global markets also showed strength. Wall Street closed with positive results, despite some disappointment with Nvidia's earnings. The Nasdaq, Dow Jones, and S&P 500 all closed at new all-time highs, with the S&P 500 reaching 6,501.86 points [1].

Despite the day's gains, the Ibovespa remains far from record levels when adjusted for inflation or the exchange rate. Analysts advise caution and recommend focusing on fundamentals rather than political polls at this stage [1].

References:
[1] https://valorinternational.globo.com/markets/news/2025/08/29/ibovespa-hits-intraday-high-as-investors-eye-brazils-2026-election.ghtml