FX.co ★ Ibovespa Hits Record High

The Ibovespa index climbed by 0.9% to reach a new record high of 143,547 on Monday, driven by indications of cooling inflation which bolstered expectations of more favorable financing conditions. The IBC-Br, an economic index, declined by 0.5% in July, marking its third consecutive monthly drop and exceeding analysts' forecasts of a 0.2% decrease. This development alleviated concerns over a potential resurgence in inflation. Projections for Brazilian inflation in the Focus bulletin saw a slight decrease, dropping by 2 basis points to 4.83% for 2025, while the forecast for the upcoming year was reduced by 12 basis points to 4.38%. Nevertheless, it is widely anticipated that the Central Bank will maintain the Selic rate at 15.00% on Wednesday, despite markets expecting a 25 basis point reduction from the US Federal Reserve next week. In the stock market, Eletrobras surged by 3.0%, Petrobras advanced by 1.5%, Vale increased by 0.9%, B3 rose by 3.2%, and Itaúsa grew by 1.4%, while Banco do Brasil experienced a decline of 2.2%.