Brazil Stocks Hit Records, Real Strengthens as U.S. Funding Bill Advances and Inflation Cools

Overview

• Brazil’s Ibovespa closed at 157,749 after a 15th straight gain, setting a 12th consecutive record, while the real firmed to about R$5.27, the lowest since June 6, 2024.
• U.S. Senate passage of a temporary funding bill to end the federal shutdown eased global risk aversion; the measure awaits a House vote and President Donald Trump’s signature.
• Brazil’s October IPCA rose 0.09%, the weakest October since 1998, bringing 12‑month inflation to 4.68%, though services inflation accelerated to 0.41% in the month and 6.20% year over year.
• Copom minutes said a 15% Selic is adequate for a ‘prolonged’ period to bring inflation to target, signaling greater confidence while noting external uncertainty and domestic fiscal risks.
• Interest‑rate futures fell across the curve as traders priced higher odds of earlier easing, then steadied on Wednesday after the sharp move, reflecting both local disinflation and improved global risk appetite.