11.11.202621:59:09UTC+00Ibovespa Closes Higher on Fiscal Adjusment Prospects

The Ibovespa rose 0.4% on Wednesday, closing at 172,060 points, after markets reacted moderately positively to the first indications of the fiscal package President Lula is preparing for 2027. Planning Minister Simone Moretti stated that the bill’s fiscal measures should generate an impact of R$50 billion to R$60 billion in 2027, with this effect increasing in subsequent years, and will give the government more tools to improve the primary balance. She also noted that the proposal would allow for additional spending freezes if necessary and affirmed that the government will “certainly” deliver a primary surplus in 2027.

Among major banks, performance was mixed: Itaú rose 1.3%, while Banco do Brasil fell 1.2% ahead of its earnings release. Other financial stocks advanced, including B3, up 2.2%, and Itaúsa, up 1.5%. Utilities also gained, with Axia adding 0.6%.

Petrobras declined 3.1% after its Q3 results, as net income came in below market expectations. In contrast, Vivo jumped 5.4% as it entered the fourth quarter with stronger sales momentum, and Rede D’Or rose 2.7% ahead of its earnings release scheduled for tomorrow.