FX.co ★ Ibovespa Rises on Focus Projections and IBC-Br Data

The Ibovespa index increased by 0.6%, nearing the 143,000 mark on Monday, driven by indications of easing inflation which bolstered the prospects for more favorable financing conditions. The IBC-Br index saw a 0.5% decline in July, marking its third consecutive decrease and coming in below the anticipated 0.2% drop, thereby easing concerns about accelerating price growth. In line with this, the Focus Bulletin revealed a decrease in inflation forecasts by 2 basis points to 4.83% for the current year. Simultaneously, investors have adjusted next year's interest rate expectations downward by 12 basis points to 12.38%. Despite these adjustments, it is anticipated that the Brazilian Central Bank will maintain the Selic rate at 15.00% during its Wednesday meeting. This decision comes just as the US Federal Reserve is likely to continue its rate-cutting cycle with a 25 basis point reduction. In the stock market, Eletrobras saw a rise of 2.7%, Petrobras increased by 0.3%, Vale by 0.4%, Itaú by 0.1%, and Bradesco by 1.1%, while Banco do Brasil experienced a slight decline of 0.4%.