FX.co ★ Ibovespa Closes Flat on Tuesday

The Ibovespa reported a slight increase, closing at 133,516 on Tuesday. Investors navigated a blend of mixed corporate earnings and anticipated a potentially more moderate approach to monetary tightening, despite a slowdown in domestic services activity and ongoing external volatility. Petrobras led the upward movement with a 1.7% rise, benefiting from a rebound in crude oil prices from multi-year lows. Other notable gainers included Ambev, which rose by 1.1%, and WEG, with a 1% increase. In contrast, BB Seguridade experienced a significant downturn, plunging 7% following disappointing first-quarter results. The services PMI for April dropped to 48.9, highlighting tepid domestic demand. This has strengthened predictions that the Copom will limit its upcoming rate hike to 50 basis points, aligning with forecasts that the Selic rate will peak at 14.75%. The prospect of a more restrained tightening approach, along with optimism for a reduction in US tariffs as trade negotiations progress, has contributed to a calming of global risk aversion.