30.07.202613:40:45UTC+00Brazil Stocks Rise Despite Mixed Earnings

The Ibovespa inched above 174,000 on Thursday as investors digested another wave of corporate earnings. Vale (+2%) was in focus ahead of its second-quarter results, scheduled for release after the market close. Other notable gainers included Axia (+1.5%), WEG (+1.5%), and Rede D'Or (+2%).

Ambev slipped 3% despite reporting stronger second-quarter net income, as both revenue and EBITDA came in below market expectations. Santander Brasil fell 0.6% after weak second-quarter figures led JPMorgan to cut its recommendation on the stock to Neutral. Bradesco dropped 3% following the announcement of a capital increase of up to R$10 billion, with controlling shareholders committing to subscribe as much as R$8 billion.

On the macroeconomic front, Brazil’s unemployment rate declined to 5.4% in the quarter ending in June, underscoring the resilience of the labor market. Recent communications from the BCB have emphasized that inflation risks are tilted more to the upside than the downside, indicating that the current interest rate-cutting cycle may soon come to a halt.