The Ibovespa rose 1.7% to close at 137,914 on Tuesday, lifted by softer inflation data, strong corporate earnings, and optimism over forthcoming government measures to counter US tariffs. Brazil’s annual inflation eased to 5.23% in July from 5.35% in June, below market expectations of 5.33%, while a benign US CPI print strengthened bets on a September Fed cut and accelerated Selic easing toward late 2025. Corporate results added momentum, with Sabesp surging 10.2% after posting adjusted EBITDA and profits well above consensus, and iron and steel producers advancing as signs of capacity cuts in China boosted Vale by 1.2%. Investors also looked ahead to the government’s contingency plan for sectors hit by the US’s 50% tariff on Brazilian goods, with Finance Minister Fernando Haddad outlining potential credit lines, deferred tax payments, government purchases of unsold export goods, and structural reforms to bolster foreign sales.