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Risk-On Rally Lifts Ibovespa to Record as Brazil Central Bank Liquidates CBSF

Signals of lower geopolitical risk helped investors rotate back into risk assets.

Overview

  • Ibovespa touched 166,070 points intraday and closed at a nominal record of 165,568, up 0.26% after late-session volatility.
  • The real recovered after swings, with the dollar peaking above R$5.40 and ending down 0.62% at R$5.3680, reversing an earlier jump tied to a Fox News visa report.
  • Brazil’s Central Bank ordered the extrajudicial liquidation of CBSF (formerly Reag) for serious rule violations, with roughly R$325 billion in funds to be transferred to other administrators.
  • U.S. stocks finished higher, led by technology and financials on solid earnings, while crude fell more than 4% as U.S.–Iran tensions eased.
  • Gold futures slipped 0.26% to US$4,623.70 per ounce as haven demand cooled and President Donald Trump indicated no plan to remove Fed Chair Jerome Powell.