FX.co ★ Ibovespa Surges on Softer-Than-Expected Inflation

The Ibovespa surged nearly 2% on Friday, approaching the 176,000 mark after Brazil’s inflation data came in below expectations. Annual inflation slowed to 4.64% in June from 4.72% in May, undershooting market projections of 4.80% and moving closer to the BCB’s target range of 1.5%–4.5%. The softer inflation print pushed bond yields lower and reinforced expectations that the central bank may adopt a more dovish stance.

Financial stocks led the advance, with Itaú and Itaúsa climbing more than 2%, Bradesco adding over 2.5%, and B3 gaining more than 3%. Utilities also traded higher, with Axia and Sabesp rising more than 2%. Among the standout performers were Rede D'Or, up 3%, and CSN, which advanced 4%.