The Ibovespa rallied the most in the world and Brazil’s currency advanced on speculation President Dilma Rousseff is close to losing the support of her administration’s most important allied political party, increasing the chances there will be a change in government.
State-controlled oil producer Petroleo Brasileiro SA rose even as oil prices fell. Lenders Itau Unibanco Holding SA and Banco Bradesco SA contributed the most to the benchmark equity gauge’s advance. Air carrier Gol Linhas Aereas Inteligentes SA surged as much as 10 percent after saying it hired PJT Partners Inc. for advice on how to strengthen the company’s capital structure, liquidity and debt profile.
Brazilian assets have rallied this year as investors and analysts increasingly see a change in government as Brazil’s best hope for emerging from its worst recession in more than a century. A corruption scandal involving Petrobras and some of Brazil’s top politicians has left Rousseff facing street demonstrations and record low popularity. Vice President Michel Temer’s party, known as PMDB, meets Tuesday to decide on whether to leave the ruling coalition, a move that could make it more likely that Rousseff is impeached.
Brazil Energy Insight 
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