FX.co ★ Ibovespa Edges Higher on Monday

The Ibovespa index edged up slightly to finish at 138,025 on Monday, buoyed by global rate cut predictions and more favorable domestic inflation forecasts, which helped to counterbalance existing political and fiscal uncertainties. Remarks from Federal Reserve Chair Jerome Powell in Jackson Hole increased the likelihood of a rate cut by the Fed in September, which helped to lower local forward rates and reduce equity discounting. Concurrently, the Central Bank's Focus survey revised the 2025 inflation forecast to 4.86%, enhancing the outlook for potential reductions in the Selic rate from its current 15% level and encouraging investment in sectors sensitive to interest rates. However, these positive aspects were tempered by ongoing concerns over unresolved U.S. tariff threats impacting commodity and logistical sectors, as well as legal and political issues raising corporate governance alarms for major banks and state-affiliated companies. With upcoming IPCA-15 data and significant global economic indicators, investors remained vigilant. Among individual stocks, WEG and Eletrobras advanced by 0.9% and 1.8% respectively, while Banco do Brasil and Embraer declined by 1.9% and 2.2%.