FX.co ★ Ibovespa Rises on Soft Inflation Data

The Ibovespa advanced 0.9% on Thursday, closing at 171,990 points, as investors responded positively to softer-than-expected inflation data and new guidance from the Central Bank of Brazil (BCB). Mid-month inflation slowed more than anticipated in June, while the BCB sought to clarify its latest 25 basis-point cut to the Selic rate and emphasized that subsequent moves will remain dependent on incoming data.

The combination of a weaker inflation reading and lower oil prices pushed the yield curve lower. Among major banks, performance was mixed: Banco do Brasil rose 1.6%, Itaú gained 1.7%, and Bradesco slipped 0.2%. Vale climbed 1.1%, recovering part of its recent losses. Petrobras added 0.5% as oil prices inched higher, despite improving shipping flows through the Strait of Hormuz. In contrast, Braskem sank 10.4% after creditors rejected its restructuring proposal.