The Ibovespa rose 0.7% to close at 176,565 on Tuesday after Brazil's mid-July inflation report came in below expectations. Annual inflation slowed to 4.52%, below forecasts of 4.67% and down from 4.8% in June. The softer reading, together with June's lower-than-expected inflation data, reinforced expectations of a 25-basis-point Selic rate cut next week. Financials led the gains, with Banco do Brasil up 1.6% and B3 adding 1.8%. Bradesco (+0.3%) and Santander (+2.2%) are due to report earnings tomorrow. Utilities also rose, with Axia rising 1.9%. Ambev gained 1.5% ahead of its earnings release on Thursday. WEG extended gains, rising 0.6% after Goldman Sachs upgraded the stock to Neutral from Sell, citing more balanced market expectations. In contrast, Vivo (-6.3%) and TIM (-5.8%) tumbled after reporting results. TIM's mobile service revenue growth slowed to its weakest pace since 2021, while Vivo saw an 8% increase in depreciation and amortization expenses.