Brazilian stocks rise as Santander jumps; LatAm FX weakens
Brazilian equities posted modest gains anchored by a sharp rally in Santander Brasil, while broader Latin American currencies came under pressure against the dollar.
The Ibovespa closed up 0.47% at 177,999.00, finding support amid a generally positive global risk environment. Wall Street indices posted solid gains, with the S&P 500 rising 0.70%, even as the US 10-year yield climbed 1.76% to 4.7450%.
Banking stocks drove the Brazilian benchmark higher, with Santander Brasil surging 13.35% to lead the gains. Banco do Brasil added 0.76% and Itaú Unibanco edged up 0.39%, while state-controlled Petrobras advanced 1.35% and Cosan gained 2.01%. Real estate firms dragged on the index, with Grupo Care dropping 5.47% and MRV falling 2.34%, alongside a 1.89% decline in meatpacker JBS.
The Brazilian real held remarkably steady, with USD/BRL ticking down 0.01% to 5.08 and the Selic rate unchanged at 14.25%. However, the dollar strengthened significantly against several other Latin American currencies, reflecting localized stress. The Bolivian boliviano weakened 4.29%, the Guatemalan quetzal fell 2.25%, and the Costa Rican colón dropped 1.33%.
Commodity markets were highly divergent, creating mixed signals for regional exporters. Cocoa prices soared 8.31% and orange juice jumped 5.03%, while corn rallied 4.09% and soybeans added 0.87% in a positive dynamic for Brazilian agricultural revenues. Wheat bucked the grain complex by falling 3.65%, coffee dropped 2.94%, and energy markets pushed higher with Brent crude adding 1.22% to $90.12.
Regional fintech stocks faced a broad selloff despite the upbeat broader market tone. PagSeguro fell 2.03%, Nubank dropped 1.10%, and XP Inc. declined 0.81%, while MercadoLibre lost 0.41%. In the metals space, lithium prices slipped 0.85%, dragging Chile's SQM down 0.93%, while Southern Copper lost 1.24%.
