FX.co ★ Ibovespa Rises on Softer Inflation Forecasts and Global Optimism

On Monday, the Ibovespa index climbed 0.9% to reach approximately 142,000, buoyed by more favorable inflation forecasts and a wave of global optimism. The revised Focus survey from Brazil adjusted the projected Consumer Price Index (CPI) for 2025 down from 4.80% to 4.72%, though it remains above the upper target ceiling of 4.5%. Meanwhile, international markets were uplifted by Donald Trump’s conciliatory remarks towards China, where he assured that "everything will be fine" and confirmed a meeting with Xi Jinping in South Korea. Gains were primarily driven by commodity and financial stocks: Vale advanced by 1.4%, CSN by 2.2%, and Gerdau by 1.2%, with Petrobras seeing a 0.5% increase. In the banking sector, Itaú rose by 0.7% and Banco do Brasil by 1.4%, with utilities also showing strength as Engie climbed 2% and Eletrobras 0.7%. Santander advanced 0.7%, following the announcement of R$2 billion in interest on equity. Ambipar gained 1.4% after XP Investimentos disclosed studies related to an Ambipar bond fund aimed at recuperating investor losses. Conversely, Raízen experienced a 1.1% decline following reports of a major investor withdrawing from its external debt obligations.