Brazil’s Financial Morning Call for Thursday, July 16, 2026

Today’s Focus

Traders are walking into Thursday’s session balancing a likely rebound in May retail sales against a central bank that is still talking about mixing pauses with cuts. The Selic is at 14.25% after June’s 25-basis-point move, and the August meeting is now a genuine two-way bet.

Vale and Petrobras remain the liquidity anchors after posting turnover above R$1 billion each on Wednesday, while the post-crash price action in Ânima Educação will draw speculative eyes. The stock lost nearly a third of its value in a single session on R$175 million in volume, raising questions about whether forced selling has run its course.

The morning’s main macro catalyst is the IGP-10 inflation index at 11:00 BRT, followed by retail sales at noon. A soft wholesale-inflation print would reinforce the disinflation narrative and support the case for another cut, while a firm retail number would validate the central bank’s cautious tone.

Offshore, the US session brings industrial production, Michigan sentiment and a heavy CFTC positioning dump after the close. For Brazil, the CFTC’s BRL speculative net positions will reveal whether last week’s real appreciation was driven by fresh longs or a short squeeze.

What matters today. Whether the IGP-10 and retail sales data land soft enough to tilt the August Copom pricing back towards a cut.

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Today’s Economic Events

4:29 am BRT

Argentina — Budget Balance (Jun): previous 1924

9 am BRT

Brazil — Retail Sales (May, MOM): consensus 0.5, previous -1.5

9 am BRT

Brazil — Retail Sales (May, YOY): consensus 1.2, previous 1

12 pm BRT

Colombia — Consumer Confidence (Jun): consensus 19, previous 17.8

6 am BRT

France — OAT Auction: previous 2.85

9:15 am BRT

Canada — Housing Starts (Jun): consensus 258, previous 261.4

9:30 am BRT

United States — Retail Sales Ex Gas/Autos (Jun, MOM): consensus 0.3, previous 0.5

9:30 am BRT

United States — Philly Fed Employment (Jul): previous 7.9

9:30 am BRT

United States — Continuing Jobless Claims (Jul/04): consensus 1820, previous 1814

9:30 am BRT

United States — Philly Fed Prices Paid (Jul): previous 53.2

01 The setup in one read

The Copom’s mixed messaging from late June is still dominating Brazil’s risk calculus. Governor Campos Neto’s signal that the committee may alternate between holding and easing has split the market: some desks see the August meeting as a clear pause, while others think another 25-basis-point cut to 14.00% is still the base case, provided today’s inflation and activity data cooperate.

Retail sales for May, due at noon, are expected to jump 0.5% month-on-month after April’s sharp 1.5% contraction. A positive print would be the first tangible evidence that the consumer is stabilising, giving the central bank cover to wait; a miss would argue for more urgent easing.

Ânima Educação’s 32.8% crash on Wednesday has injected a dose of single-stock risk into an otherwise macro-driven tape. With R$175 million changing hands, the move was large enough to force momentum funds to reevaluate their education-sector exposure ahead of today’s session.

Assessment — Bias is set by domestic macro prints MEDIUM

The Ibovespa opened Wednesday’s session with tentative buying before fading into a 0.36% loss, underperforming a 0.38% gain on the S&P 500. The decoupling suggests domestic concerns — specifically the opacity around the Copom’s August intentions — are weighing on local risk appetite. Today’s IGP-10 and retail sales releases land before the cash open and at noon respectively, and their combined tone will dominate price action. If retail sales beat the 0.5% consensus, expect the Selic-sensitive consumer and real-estate names to catch a bid; a miss would harden expectations of a prolonged pause and may push the Ibovespa back towards the 176,011 support. The variable to watch is the IGP-10’s headline print at 11:00 BRT, as a deflationary surprise could quickly reprice August-cut odds.

02 Where Brazil is set to open

Instrument

Last close

Indicated

Watch today

Ibovespa

176,011

−0.2% to −0.5%

Retail sales at 12:00; IGP-10 at 11:00

USD/BRL

5.0788

5.07 – 5.10

BRL speculative positioning; US IP at 13:15

DI Jan 2027

14.35%

—

IGP-10 inflation; Copom minutes

Vale ADR

—

—

Iron ore overnight; China stimulus chatter

Petrobras PN

—

—

Brent crude; dividend speculation

The Ibovespa is set to open softly, with futures indicating a 0.2% to 0.5% decline as traders lighten positions ahead of the retail-sales print at noon. Wednesday’s 0.36% drop to 176,011 left the index squarely inside its recent range, roughly 11.4% below the 52-week high of 198,657 and comfortably above the year’s low of 132,129.

The USD/BRL is likely to oscillate around the 5.08 handle, with the next directional cue coming from the 11:00 IGP-10 release. A softer-than-expected wholesale inflation number would support the real, while a firm print would push the pair back towards 5.10.

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Brazil Morning Call — Live Board

B3 · pre-open setup

Jul 16, 2026 · 03:47

Ibovespa · benchmark

176,010.90

-0.36%

+30.14% over 12 months

Market breadth · 33 names

36% advancing

12 ▲ advancing21 declining ▼

Currencies, rates & key inputs

USD / BRL

5.07

-0.14%

EUR / BRL

5.81

+0.12%

Selic rate

14.25%

·

Brent crude

84.69

-0.31%

Iron ore

161.91

·

Sector heatmap · average move today

Mining

+1.74%

VALE3, CSNA3, GGBR4

Materials

+0.65%

SUZB3, KLABIN

Other

+0.28%

BRENT, WTI, IRON ORE, GOLD

Financials

+0.22%

ITUB4, BBDC4, BBAS3, B3SA3

Energy

-0.15%

PETR4, PRIO3

Industrials

-0.17%

WEGE3, RENT3

Utilities

-0.81%

ENEV3

Consumer Disc.

-1.17%

AZZA3, LREN3

Consumer Staples

-1.88%

SLCE3, ABEV3

Latin America scoreboard

IndexLastTodayStrength

IbovespaBrazil

176,010.90

-0.36%

S&P/BMV IPCMexico

66,409.65

-0.18%

S&P IPSAChile

10,947.38

-0.70%

S&P MERVALArgentina

3,291,246

+1.92%

MSCI COLCAPColombia

2,292.03

-0.29%

BVL S&P PerúPeru

57,174.37

—

Full instrument board

InstrumentLastChangeYoYPrev.HighLowVolume

IBOV

176,010.90

-0.36%

+30.14%

176,641.10

—

—

—

USD/BRL

5.07

-0.14%

-8.64%

5.08

5.08

5.07

—

EUR/BRL

5.81

+0.12%

-9.77%

5.81

5.82

5.81

—

SELIC

14.25%

—

—

—

—

—

BRENT

84.69

-0.31%

+23.60%

84.95

85.75

84.34

3,056

WTI

79.52

-0.10%

+19.80%

79.60

80.59

79.14

15,332

IRON ORE

161.91

—

+66.81%

161.91

161.91

1

GOLD

4,029

-0.36%

+20.19%

4,044

4,072

4,028

21,801

SILVER

57.27

+0.28%

+51.30%

57.11

58.23

57.16

5,991

LITHIUM

71.06

-0.73%

+78.86%

71.58

71.81

70.24

267,936

SOY

1,199

-0.29%

+18.28%

1,202

1,205

1,197

9,150

CORN

468.25

+4.64%

+15.55%

447.50

470.50

468.00

11,214

WHEAT

672.25

-0.77%

+24.20%

677.50

679.75

671.50

9,250

COFFEE

324.50

-3.77%

+3.16%

337.20

336.40

321.00

—

SUGAR

14.86

-0.13%

-10.27%

14.88

14.99

14.71

—

ORANGE JUICE

140.45

+0.14%

-54.88%

140.25

143.50

135.65

—

COTTON

82.13

+3.18%

+22.67%

79.60

79.67

78.28

15,911

BEEF

230.13

-0.56%

+2.78%

231.43

232.10

229.25

20,583

CATTLE

344.38

-1.27%

+5.77%

348.80

346.58

342.25

10,305

COCOA

5,917

+4.54%

-28.90%

5,660

6,082

5,583

—

PETR4

40.59

-0.17%

+27.04%

40.66

40.59

—

—

VALE3

74.51

+0.68%

+38.21%

74.01

74.51

—

—

SUZB3

41.48

+0.90%

-17.86%

41.11

41.48

—

—

KLABIN

17.39

+0.40%

-7.99%

17.32

17.39

—

—

SLCE3

13.50

-2.24%

-16.64%

13.81

13.50

—

—

ABEV3

15.57

-1.52%

+17.33%

15.81

15.57

—

—

ITUB4

43.14

-1.12%

+26.88%

43.63

43.14

—

—

BBDC4

18.60

-0.16%

+15.53%

18.63

18.60

—

—

BBAS3

20.55

-0.19%

-1.67%

20.59

20.73

20.43

14,716,900

B3SA3

15.69

+2.35%

+14.28%

15.33

15.85

15.42

36,695,600

WEGE3

44.26

+0.14%

+11.57%

44.20

44.26

—

—

PRIO3

57.50

-0.12%

+36.51%

57.57

57.50

—

—

RENT3

40.35

-0.47%

+9.32%

40.54

40.35

—

—

AZZA3

18.66

-1.01%

-48.45%

18.85

18.91

18.54

1,039,200

CSNA3

5.24

+0.77%

-35.15%

5.20

5.24

—

—

GGBR4

24.20

+3.77%

+46.93%

23.32

24.42

23.09

15,374,800

ENEV3

26.95

-0.81%

+100.07%

27.17

26.95

—

—

LREN3

14.10

-1.33%

-23.95%

14.29

14.10

—

—

Largest moves today

CORN

468.25

+4.64%

COCOA

5,917

+4.54%

COFFEE

324.50

-3.77%

GGBR4

24.20

+3.77%

COTTON

82.13

+3.18%

B3SA3

15.69

+2.35%

SLCE3

13.50

-2.24%

ABEV3

15.57

-1.52%

The session read

The Ibovespa eased 0.36%, with breadth negative — 12 of 33 names higher. Mining led, while Consumer Staples lagged.

03 On the B3 radar today — IGP-10 and retail sales dominate the domestic calendar

Item

When

Why it matters

IGP-10 Inflation Index

11:00 BRT

Wholesale inflation gauge; last −0.3%; another negative print would reinforce disinflation and bolster August-cut bets

Retail Sales (MoM)

12:00 BRT

Est. 0.5% vs prior −1.5%; the first clean read on consumer health since April’s rout

Retail Sales (YoY)

12:00 BRT

Est. 1.2% vs prior 1.0%; confirms whether the annual trend is holding

IBC-Br Economic Activity

19:30 BRT

Prior 0.5%; the BCB’s broad activity proxy lands after the close

CFTC BRL Speculative Positions

19:30 BRT

Prior 30.8; reveals whether real strength was speculative or structural

Ânima Educação (ANIM3)

Open

Post-crash price discovery; R$175m in volume on Wednesday signals forced selling may not be done

The morning’s two domestic prints will set the tone well before the lunch break. The IGP-10 at 11:00 is the inflation wildcard: the prior reading was −0.3%, and another deflationary print would give the Copom’s doves a powerful argument for another cut in August. A positive surprise, however, would lock in the pause narrative.

Retail sales at noon is the session’s main event. Consensus is for a 0.5% monthly rebound, but the range of estimates is wide after April’s 1.5% plunge caught everyone off guard. Traders should watch the services-heavy subcomponents for clues on consumer-facing stocks like Lojas Renner and Magazine Luiza.

04 Copom and the macro backdrop

The Selic rate stands at 14.25% following the June Copom meeting, where the committee delivered a 25-basis-point cut alongside guidance that it sees room to mix pauses with renewed easing depending on the data flow. The central bank’s inflation target horizon now extends to the first quarter of 2028, giving policymakers flexibility to calibrate the pace of loosening.

August’s meeting has become a genuine coin flip. The Focus survey’s median estimate has been slow to update, but the DI curve is pricing roughly even odds of a hold versus another cut. Today’s IGP-10 and retail sales prints are the last major data points before the Copom enters its pre-meeting quiet period.

The external backdrop is mixed. The Federal Reserve’s industrial production and capacity utilisation data, due at 13:15 BRT, will shape sentiment on global demand just as Brazil’s commodity-heavy index is searching for direction. Michigan consumer sentiment and inflation expectations follow at 14:00, with the 5-year expectations gauge at 3.3% last time — any move higher would pressure emerging-market rates.

After the close, the CFTC’s positioning data will reveal whether the real’s recent stability reflects genuine long positions or simply a lack of conviction on either side. The prior BRL speculative net position was 30.8, and a jump towards 40 would signal that offshore funds are getting more comfortable with Brazil’s macro trajectory.

05 Corporate stories to watch today

Ânima Educação (ANIM3) is the name on every trader’s screen after Wednesday’s 32.8% collapse. The R$175 million in turnover suggests institutional forced selling rather than a retail-driven panic. The stock is now in uncharted territory on the 52-week chart, and the opening auction will be a critical test of whether bargain hunters are ready to step in.

Vale (VALE3) remains the board’s liquidity leader with R$1.15 billion in turnover on Wednesday, even as the stock traded flat. Iron ore futures stabilised overnight in Asia, but the real catalyst for the name today is the US industrial production print — a strong number would validate the demand thesis for the steel complex, where Gerdau (GGBR4) already jumped 3.8% on Wednesday.

Petrobras (PETR4) recorded R$1.04 billion in volume amid growing chatter that the board may accelerate its special-dividend timetable. Brent crude is holding above $80, and the company’s cash generation remains robust, lending credibility to the distribution narrative.

Banco do Brasil and Itaú Unibanco are ex-dividend today according to market calendars, which will mechanically weight on the Ibovespa’s opening print. The adjustment is worth roughly — points on the index and will be fully priced in within the first few minutes of cash trading.

06 The levels to watch at the open

The Ibovespa’s 176,011 close leaves it perched just above the psychologically important 176,011 support level, which has held twice in the past month. A break below that on a poor retail-sales print would open the door to the mid-June low near 173,500, while a positive surprise could trigger a squeeze back towards the 177,800 resistance.

On the USD/BRL, the 5.07-5.10 range has contained the pair for the past two weeks. The IGP-10 at 11:00 is the catalyst most likely to break the stalemate: a deflationary print would push the pair towards the 5.04 support, while an inflationary surprise would send it towards 5.12.

In the rates market, the DI Jan 2027 contract is the cleanest proxy for August Copom expectations. The 14.35% close implies roughly even odds between a hold and a 25-basis-point cut. A retail-sales beat would push this contract above 14.40%, pricing out the cut scenario.

For single-stock traders, ANIM3’s opening print will set the day’s risk tone. A stabilisation above the Wednesday low would calm nerves across the mid-cap space; a further 10% decline would signal that the selling cascade is still unwinding and could spill into other education names like YDUQ3 and SEER3.

07 What to watch

Retail sales MoM: A beat above 0.5% would validate the consumer recovery and favour a Copom hold, lifting the real and the consumer discretionary sector

IGP-10 inflation: Another negative print would be the strongest single argument for an August cut, potentially sending the DI curve lower and the Ibovespa higher

ANIM3 opening auction: Price discovery after the 32.8% crash will set risk appetite across the mid-cap space; forced-selling contagion is the tail risk

CFTC BRL positioning: A surge above 40 in speculative net longs would confirm that offshore money is returning to Brazil, supporting the real into month-end

Frequently Asked Questions

What is the Copom expected to do in August?

The market is split. The DI curve is pricing roughly even odds between holding at 14.25% and cutting another 25 basis points to 14.00%. Today’s IGP-10 and retail sales data will tilt those probabilities.

Why did Ânima Educação crash 32.8%?

The trigger has not been publicly confirmed, but the turnover of R$175 million points to institutional forced selling rather than a fundamental news shock. The stock is now in post-crash price discovery.

What time are Brazil’s data releases today?

The IGP-10 inflation index lands at 11:00 BRT, and retail sales for May follow at 12:00 BRT. Both are Brasília time, one hour ahead of New York.

How does the US macro calendar affect Brazil today?

US industrial production at 13:15 BRT and Michigan sentiment at 14:00 BRT will shape global risk appetite. Strong data would support commodity stocks; weak data would reinforce the Fed-dovish narrative and may benefit EM carry trades.

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