FX.co ★ Ibovespa Starts the Week Strong

On Monday, the Ibovespa index rose by 1.5% to close at 136,855, buoyed by positive global trade sentiments and strong domestic factors. Optimism surrounding the potential for new US trade agreements—highlighted by promises from the White House regarding additional deals before the July 9th deadline on tariff discussions—enhanced the performance of export-focused industries and attracted new foreign investments in Brazilian stocks. Domestically, fiscal performance in May exceeded expectations, with the gross public debt-to-GDP ratio reported at 76.1%, better than the anticipated 76.6%. This alleviated concerns about the country's debt outlook. Concurrently, the Central Bank of Brazil (Copom) reiterated that the Selic rate would remain elevated "for a very prolonged period," encouraging investments in yield-sensitive areas and boosting banking and real estate trust sectors. Notable gains were observed in Banco do Brasil, Santander, Itaúsa, and Bradesco, with increases ranging from 1.1% to 2.2%.