FX.co ★ Ibovespa Tests Fresh Record High

The Ibovespa index advanced approximately 0.9% on Tuesday, surpassing the 137,500 mark for the first time since its record peak in August. This uptick followed the US-China agreement to delay the imposition of most tariffs for 90 days, which sparked rallies in oil and metal markets. Petrobras stock increased by over 4%, driven by rising oil prices and its impressive first-quarter profit of R$35.2 billion—a 49% increase compared to the previous year. Meanwhile, Vale and similar companies saw gains due to enhanced demand prospects from China. Domestically, the minutes from the Copom meeting highlighted the central bank's commitment to a restrictive monetary stance to ensure inflation expectations are thoroughly anchored, despite futures markets withdrawing predictions of additional rate hikes, which in turn supported banks and real-estate trusts. President Lula's visit to Beijing concluded with President Xi's declaration of a new US$9 billion Chinese credit line for Latin America, fueling optimism for new infrastructure investments and export opportunities. At the same time, softer US inflation data for April have strengthened the outlook for Federal Reserve rate cuts later this year.