FX.co ★ Ibovespa Hits 8-Month High

The Ibovespa index surged by 2.1%, closing at 136,232—the highest level observed in eight months. This upward momentum was spurred as investors absorbed successive central-bank decisions alongside a series of promising corporate earnings reports. Notably, the financial sector was at the forefront of this increase. Bradesco experienced a remarkable 14.9% jump after surpassing first-quarter earnings expectations, while B3 climbed by 9.1%, thanks to record trading volumes. Additionally, Ambev and Itaú both rose by 1.0% each, following the release of similarly strong quarterly performance results. Petrobras also saw gains, appreciating by 2.2% amidst stronger oil prices and the announcement of a meeting between senior U.S. and Chinese trade representatives in Switzerland, which has heightened hopes for tariff alleviation. On the domestic front, the Central Bank of Brazil’s decision to hike the Selic rate by 50 basis points to 14.75%, alongside its data-dependent approach, highlighted a steadfast commitment to ongoing monetary restraint. Meanwhile, the U.S. Federal Reserve maintained interest rates at current levels but cautioned that the introduction of new U.S. tariffs might amplify inflationary pressures and labor market challenges, tempering expectations even as global risk appetite showed signs of improvement.