FX.co ★ Ibovespa Rebounds

The Ibovespa index experienced a rise of approximately 0.5%, surpassing the 133,800 mark on Tuesday. This upturn bounced back from the previous day's decline, as investors assessed the stability of corporate earnings alongside the likelihood of a more moderate monetary tightening cycle. This optimism persisted despite weaker domestic service sector data and external economic volatility. Leading the gains, Petrobras saw a significant increase of over 2%, as crude oil prices recovered from their prolonged lows. Following closely were Vale, gaining approximately 1%, and WEG, with an increase exceeding 1%. Conversely, BB Seguridade suffered the largest drop, falling over 5% after revealing an unsatisfactory first-quarter performance. On the economic landscape, Brazil's services PMI declined to 48.9 in April, indicating a deceleration in domestic demand. Nonetheless, this outcome has bolstered expectations that the Central Bank of Brazil (Copom) might restrict its upcoming rate hike to 50 basis points, aligning with the projection for the Selic rate to peak at 14.75%. This tempered tightening expectation, combined with optimism for a de-escalation of US tariffs—particularly if trade negotiations advance—has contributed to alleviating global risk aversion.