FX.co ★ Ibovespa Rebounds Toward Record Highs

On Thursday, the Ibovespa index increased by 0.8%, closing at 140,993, moving closer to its record highs. This upward trend was driven by expectations of more favorable global financing conditions and clearer indications of impending interest rate cuts in the United States. Recent weak labor market indicators in the U.S. have bolstered the belief that the Federal Reserve will soon adopt a more accommodative monetary stance, consequently supporting riskier investments. Domestically, investors responded positively to a successful sovereign debt issuance, which enhanced both market liquidity and investor confidence, as the Treasury secured over $3 billion through a dual-issue foreign bond transaction. Additionally, forecasts indicating a softer inflation trajectory have further bolstered expectations that Brazil will pursue a gradual easing of its monetary policy, benefiting sectors sensitive to interest rate changes. In the corporate realm, companies such as Ambev, Banco Do Brasil, and Embraer led the market, with each seeing share price increases of over 2%.