FX.co ★ Ibovespa Kicks Off the Month with Losses

On Monday, the Ibovespa index edged down by 0.2%, closing at 136,787 points as investors evaluated a mix of macroeconomic indicators, a downgrade in Brazil's credit outlook by Moody’s, and intensifying global trade tensions. The latest Focus report from the central bank suggests revised expectations for 2025, forecasting lower inflation at 5.46% and a deceleration in GDP growth to 2.13%, reflecting uncertainties in Brazil’s economic direction. Moody’s adjusted Brazil’s sovereign credit outlook from ‘positive’ to ‘stable’, maintaining a ‘Ba1’ rating due to slower-than-expected progress in tackling fiscal inflexibility and strengthening fiscal credibility. Most stocks ended in negative territory, with significant declines in major companies like Ambev, WEG, Companhia de Saneamento, and B3, which fell between 1.3% and 2.1%. The leading banks also experienced declines. Conversely, Gerdau recorded notable gains, rising by 4.9% after President Trump announced plans to increase tariffs on steel and aluminum imports to 50%. Meanwhile, Embraer experienced a positive performance due to renewed optimism regarding a potential aircraft deal with Ethiopian Airlines.