FX.co ★ Ibovespa Sets Record High

Brazil's Ibovespa index gained 0.9%, reaching a new record of 166,277 points. This rise was driven by strong performances in heavyweight stocks, which countered a generally softer global sentiment and ongoing trade uncertainties. Notably, commodity-linked sectors fueled the rally; Petrobras increased by 0.7% in response to higher oil prices, and Vale rose by 2% due to stable iron ore prices. These gains helped stabilize the index despite challenges in sectors sensitive to interest rates and consumer demand. The financial sector also performed well, as stable economic conditions and a steady local interest rate outlook bolstered demand for major banks. In addition, Sabesp surged 3.6% following regulatory approval for its acquisition of Emae, enhancing confidence in corporate activities. Although renewed tariff threats from the United States and general risk aversion affected appetite for cyclical stocks, steady inflation expectations and a supportive domestic macroeconomic environment mitigated downward pressures.