FX.co ★ Ibovespa Poised for Weekly Gains

The Ibovespa index climbed approximately 0.4%, surpassing the 137,000 mark on Friday—a peak not seen since August—positioning the São Paulo exchange for a weekly increase of about 1.3%. This upward movement was fueled by domestic inflation data and a surge in global optimism regarding trade negotiations that bolstered investor risk appetite. In Brazil, the annual inflation rate increased to 5.53% in April, its highest since February 2023, staying above the central bank’s upper target of 4.5% for the sixth consecutive month—occurring just after the Central Bank’s recent 50 basis point increase in the Selic rate. Meanwhile, global trade concerns diminished as senior officials from the United States and China prepared for meetings in Switzerland, while a new US–UK trade agreement signed on Thursday suggested a reduction in tariff tensions, boosting positive sentiment around exports. In corporate developments, Itaúsa saw a surge of over 4% after announcing its first-quarter results, leading a rally among major financial stocks. Conversely, Suzano, Banco Bradesco, and Localiza each saw declines of around 2% following their own less-than-stellar earnings reports.