Brazil small caps surge 20%+ in three sessions, Ibovespa retreats

A sharp rally in Brazilian small-cap stocks saw 18 names gain over 20% in three sessions, with 17 from the small-cap index and only seven in the Ibovespa. The Ibovespa rose 7.7% on Monday but fell 1.3% subsequently, indicating a rotation into smaller names. This suggests a risk-on shift within Brazilian equities, though the sustainability is uncertain.