Foreign capital returns to Brazil equities after two-month outflow streak

Net inflows of roughly US$780 million in July signal a pause in selling pressure, though JPMorgan cautions the trend may be fleeting.

By Handelsavisen Newsroom · Automated 2026-07-27 08:37 UTC · 1 min read

Foreign investors returned to Brazil’s stock market in July, posting net purchases of R$4.2 billion (approximately US$780 million) through 21 July.

The buying activity marks a reversal of two consecutive months of capital outflows from the B3 exchange, offering a brief respite for local equities that had been under sustained selling pressure.

56 billion (US$8.4 billion) in January and February 2026, highlighting the scale of the recent retreat.

The shift in flow direction suggests that some international portfolio managers are beginning to re-engage with Brazilian assets, potentially attracted by valuation levels or sector-specific opportunities.

However, the magnitude of the inflow remains modest compared to the surge seen earlier in the year.

Net foreign inflows into Brazil’s stock exchange reached R$42.56 billion (US$8.4 billion) in January and February 2026, highlighting the scale of the recent retreat.

JPMorgan Chase has issued a warning that the current influx of capital may be temporary.