FX.co ★ Ibovespa Rises as Oil Prices Retreat

The Ibovespa inched higher on Monday, trading above 174,500, as a pause in the Middle East conflict pushed oil prices lower and eased inflation concerns. Crude retreated after the US and Iran suspended strikes over the weekend amid renewed diplomatic efforts, with President Donald Trump reportedly open to resuming peace talks. Softer oil prices supported financial stocks, with Itaú and Bradesco each advancing nearly 1%. Utilities also gained ground, led by Axia, which climbed more than 2%, while Sabesp added close to 1%. WEG rose about 4% after Bradesco BBI upgraded the stock to Outperform and JPMorgan lifted its rating to Overweight. The company also won a contract to supply two generating units for the expansion of Engie Brasil’s Jaguara hydroelectric plant. Embraer gained more than 3% after reporting a record second-quarter order backlog of $34.5 billion. In contrast, Petrobras dropped nearly 3% as the decline in oil prices pressured the shares.