FX.co ★ Ibovespa Rises for 3rd Consecutive Session

On Thursday, the Ibovespa index climbed by 0.5%, settling at 137,800, marking its third consecutive session of gains. This upward trajectory was supported by clearer fiscal policies, reduced inflation levels, and enhanced export outlooks. The agreement brokered by Finance Minister Fernando Haddad to adjust the IOF tax increase alleviated stress on banks and retailers. Additionally, the IPCA for June decreased to 5.32% year-over-year, reinforcing market confidence in the expectation that the Copom will maintain interest rates at 14.75%, thereby benefiting consumer-related stocks. Internationally, the US–China accord in London aimed at rejuvenating last month’s tariff reprieve and easing restrictions on rare-earth elements bolstered demand projections for Petrobras, which rose by 2.5%, and Vale. Embraer also saw a 3.2% rise, driven by optimism for increased global orders. However, ongoing trade uncertainties and geopolitical tensions in the Middle East contributed to sustained market volatility, thereby supporting gains in the commodity and defense sectors.