The Ibovespa rose 0.5% on Monday to close at 182,514, supported by a rebound in global equity markets and renewed optimism over potential peace talks in the Middle East, which bolstered Brazilian assets. Although the index pulled back from its intraday highs, the session remained positive after comments from President Trump about “serious discussions” to end operations in Iran, briefly easing the elevated geopolitical risk premium.
The recovery was led by industrial and utility heavyweights. WEG advanced 3.6% after announcing an investment in battery storage systems, while Sabesp gained 2.5% amid broader strength across the sanitation sector.
Even so, the tone from policymakers remained cautious. Central bank director Gabriel Galípolo warned that the current oil shock is still pushing inflation expectations higher and weighing on domestic economic activity. Despite these headwinds, blue-chip stocks such as Vale and Petrobras each added around 0.7%.
