FX.co ★ Ibovespa Inches Up on Easing Inflation

The Ibovespa edged back above the 175,000 mark on Friday, as fresh signs of disinflation strengthened expectations for lower interest rates from the BCB. Producer prices rose 1.94% year-on-year in July, down from a 2.47% increase in June, while the IGP-M declined on a monthly basis. The indication of easing inflationary pressures supported credit-sensitive shares as bond yields retreated. Financial stocks advanced, with Bradesco up 1%, Banco do Brasil gaining more than 1%, and Santander climbing nearly 2%. B3 added almost 2% after JPMorgan reported that emerging-market equity funds saw increased inflows, with Latin America returning to positive territory and Brazil rebounding after four weeks of heavy outflows. Petrobras rose more than 0.5% after Bradesco BBI upgraded the stock to Outperform from Neutral.