FX.co ★ Ibovespa Drops at Week Start

The Ibovespa index declined by 0.6%, concluding at 141,792 on Monday. The drop was driven by lingering concerns over domestic economic growth, persistent inflation forecasts, and political uncertainties. Market attention was focused on the continuing trial of former president Jair Bolsonaro, with a decision regarding alleged coup activities anticipated by the end of the week, which contributed to the volatility. Economic reports, including the IGP-DI and the Central Bank’s Focus survey, indicated stable inflation expectations at 4.85% for 2025, while GDP growth estimates slightly decreased to 2.16% from 2.19%. The banking sector showed significant declines, with Banco do Brasil falling 0.9%, Banco Santander dropping 1.2%, Itaúsa slipping by 0.7%, and Bradesco decreasing 0.9%. In contrast, Petrobras saw a 0.5% increase, bolstered by OPEC+'s announcement of a smaller-than-expected output increase, which positively influenced the company's short-term market prospects.