Ibovespa hits 12th record high and dollar falls to lowest level.

Brazilian stock market continues to rise with inflation under control.

The Ibovespa closed Tuesday (11) at a new historical record, advancing 1.60% to 157,749 points. It is the index's 12th consecutive record, marking the longest sequence of gains since June 1994. The dollar, in turn, retreated 0.64% and closed at R$ 5.2727 — the lowest level in 17 months.

Optimism in Brazilian markets mainly reflects the October inflation result, which slowed to 0.09%, below market expectations that predicted between 0.10% and 0.16%. In the 12 months ending in October, the IPCA (Consumer Price Index) stood at 4.68%, also lower than the projection of 4.75%.

What boosted the stock market?

The drop in inflation fuels hopes for interest rate cuts in Brazil. Economists highlight that the result confirms a more consistent disinflation process, with downside surprises concentrated in administered goods and services. Residential electricity saw a reduction of 2.39%, exerting the largest negative impact on the month's index.

Among the positive highlights on the stock exchange, the stocks that rose the most were Lojas Hering (3.94%), Rizen (3.5%) and Magazine Luiza (3.44%). On the other hand, ASA (down 2.05%) and Suzano (1.93%) led the losses.

Mixed international scenario

In the United States, the Dow Jones hit a new closing record, rising 1.181% to 47,927.96 points. The S&P 500 advanced 0.22%, while the Nasdaq fell 0.25%, pressured by a nearly 3% drop in Nvidia shares. The US Senate approved the end of the shutdown, reducing uncertainty in the global market.

Corporate impacts

In Brazil, Oi's judicial reorganization was converted into bankruptcy — the most impactful corporate news of the day. Rede D'Or partnered with Atlântica, selling 49,99% of the São Luís maternity hospital. Banco Pan reported a net profit of 187 million, while JSL posted an adjusted profit of 35.8 million, with a positive market reaction despite a drop of 51% during the period.

What changes for you?

The series of record highs on the stock exchange reflects investor confidence in the Brazilian economy. Controlled inflation creates room for the Central Bank to reduce interest rates, which could positively impact loans and financing. A weaker dollar favors importers and tourists, but puts pressure on exporters.

Photo by Vadim Shevyrin on Unsplash