FX.co ★ Ibovespa Closes Higher as Oil Prices Retreat

The Ibovespa climbed 0.7% on Monday, closing at 175,335 points, as a pause in the Middle East conflict pushed oil prices lower and eased inflation concerns. Crude retreated after the United States and Iran halted strikes over the weekend amid renewed diplomatic efforts, with President Trump reportedly signaling openness to resuming peace talks.

The drop in oil prices buoyed financial stocks: Itaú advanced 1.4%, Bradesco added 1.2%, and Itaúsa rose 2%. Utilities also traded higher, led by Axia (+2%) and Sabesp (+1.7%).

WEG gained 0.9% after Bradesco BBI upgraded the stock to “Outperform” and JPMorgan raised its recommendation to “Overweight.” The company also announced a contract to supply two generating units for the expansion of Engie’s Jaguara hydroelectric plant.

Embraer jumped 5.3% after reporting a record second-quarter order backlog of $34.5 billion. Moving in the opposite direction, Petrobras slid 2.8%, pressured by the weaker oil prices.

Looking ahead, investors are turning their attention to July’s mid-month inflation report, due Tuesday, for fresh signals on the outlook for monetary policy.