FX.co ★ Ibovespa Closes in on Record Highs

The Ibovespa index increased by 0.5%, reaching 139,549 on Tuesday, approaching its highest recorded levels. This uptick followed the government's decision to challenge Congress's reversal of the IOF surcharge in the Supreme Court, which helped restore some fiscal clarity. Additionally, May’s gross debt-to-GDP ratio was lower than market expectations, alleviating investor concerns regarding Brazil's debt outlook. On the corporate side, key players made notable gains: Embraer surged by 4.6% due to new orders for A-29 Super Tucano aircraft, Vale rose by 1.7% thanks to strong iron-ore export numbers, and Petrobras continued to rise by 0.9% in response to shifts in global oil prices. Moreover, the Central Bank of Brazil's (Copom) reassurance that the Selic rate will remain high for an extended period bolstered attractive real interest rates, drawing yield-seeking investments into banks and real estate trusts.