FX.co ★ Ibovespa Falls on Growth Concerns and Political Risks

On Monday, the Ibovespa index dipped by 0.4%, settling around 142,000 amid growing concerns about reduced domestic growth, persistent inflation forecasts, and political risks. Market participants remained focused on the trial of former President Jair Bolsonaro, anticipating a verdict on alleged coup attempts by the end of the week, which added a layer of political uncertainty. On the economic front, both the IGP-DI inflation index and the Central Bank's Focus survey indicated stable inflation expectations at 4.85% for 2025. However, GDP projections saw a slight decline from 2.19% to 2.16%. Within the corporate sector, major banks such as Itaú Unibanco, down by 0.4%, and Bradesco, down by 0.3%, experienced declines. Conversely, Petrobras witnessed gains as OPEC's increase in output was less significant than anticipated, enabling the Brazilian oil giant to retain more of its market share.