FX.co ★ Ibovespa Posts Strong gains to Start Week

The Ibovespa advanced by 1.5%, reaching 139,256 on Monday, as a reduction in tensions in the Middle East and potential de-escalation between Iran and Israel enabled investors to shift their focus to this week's G7 summit in Alberta. Additionally, the market is anticipating consecutive interest rate pauses from both Copom and the Federal Reserve. On the domestic front, economic activity as measured by April's IBC-Br indicator showed a fourth consecutive monthly increase of 0.2%. Meanwhile, June's IGP-10 index experienced a decline of 0.97%, reflecting a more subdued inflation outlook as highlighted in the latest Focus Bulletin. In corporate developments, Vale led gains among major companies, climbing 3.3% after obtaining an environmental license for its Bacaba copper project. Embraer surged by 6.2% on strong order activity, while Magazine Luiza jumped 6.3%.