FX.co ★ Brazil Stocks Rise on Strong Services Activity

The Ibovespa inched higher on Friday, hovering near the 173,000 mark as investors digested May industrial production figures and June services PMI data. The services sector expanded at a slightly faster pace in June amid stronger demand, bolstering stocks tied to domestic tertiary activity. Rede D'Or rose nearly 1%, Raia Drogasil advanced 1.5%, and both Bradesco and Banco do Brasil added about 0.5%.

At the same time, oil prices held near pre-conflict lows on optimism over potential US–Iran peace progress, easing worries about energy-driven inflation and lending support to financials and the broader index. In contrast, industrial production grew only 0.2% year-on-year in May, far short of the 1.3% increase expected by analysts, and Ambev slipped nearly 1%.

Investors also kept an eye on Washington’s decision to open a public consultation on Brazil’s trade policies and practices, while awaiting the latest trade balance data.