The Ibovespa index edged up by 0.3%, closing at 163,370 on Friday, driven by emerging signals of reducing inflation, which bolstered expectations for the Central Bank to potentially cut interest rates later in the year. The inflation rate for December fell more than anticipated to 4.26%, staying below the policy's upper tolerance threshold and slightly under market expectations. Among banking stocks, Santander posted a gain of 1.6%, while Banco do Brasil and Bradesco remained relatively unchanged. In other sectors, Ambipar and Suzano were among the top performers, with increases of 2.2% and 2.9%, respectively. The meatpacking industry saw a positive surge fueled by optimism concerning the forthcoming vote on the Mercosur–EU trade agreement, as Minerva rose by 2.5% and Marfrig advanced by 0.5%. Conversely, Vale did not fare as well, declining by 0.9%.