São Paulo, Brazil – February 20, 2026 – Brazil’s Ibovespa index experienced a volatile trading session, initially retreating following the release of stronger-than-expected U.S. Inflation data before partially recovering. The index closed February 18, 2026, down 0.24% at 186,016.31 points, resuming trading after a two-day pause for Carnival celebrations.
The market’s movements were also influenced by the extrajudicial liquidation of Banco Pleno and Pleno DTVM, announced by the Central Bank of Brazil on February 18, 2026. This action added to investor uncertainty, alongside global economic indicators. The liquidation follows the previous issues with Master, where an ex-partner was involved.
On February 19, 2026, the Ibovespa showed signs of recovery, rising 0.28% to 186,553 points, driven in part by gains in Petrobras shares. However, investors were also digesting data from the IBC-Br economic activity index, which indicated a 0.2% decline in December compared to November – a slightly better result than anticipated. This data is considered a precursor to Brazil’s GDP figures.
Economists at PicPay noted that the IBC-Br results, reflecting a 2.3% increase in the agricultural sector and a 0.3% rise in industry, could support expectations for a slowdown in economic activity and potentially pave the way for interest rate cuts by the Central Bank. Banco Bmg’s chief economist added that growth in agriculture and industry mitigated a more significant decline in the index.
Despite the Ibovespa’s partial rebound, tensions between the United States and Iran continued to weigh on market sentiment. On February 20, 2026, the index retreated again amid concerns over the stronger U.S. Inflation figures. Today also marks the expiration of options on stocks, which is expected to increase volatility in the Brazilian stock market.
Vale, a major Brazilian mining company, has experienced a four-day decline, raising questions among investors about the stock’s future performance. Meanwhile, the oil sector has seen an increase, contributing to the complex market dynamics.
