FX.co ★ Ibovespa on a 7-Day Win Streak

The Ibovespa index increased by 0.2%, surpassing the 135,000 mark on Tuesday, marking its seventh consecutive gain and reaching its highest point since September. This performance comes as Brazil's market weighs promising external factors against persistent domestic challenges. The U.S. decision to cap and reduce cumulative duties on auto parts has improved export prospects for Brazil's industrial and mining sectors, leading to early gains for companies like Vale and most major banks. However, Petrobras experienced a decline, as investors anticipate upcoming production and sales figures. The tariff relief from the U.S., praised as a “significant achievement” by Commerce Secretary Lutnick, has invigorated risk appetite in the market. Nevertheless, there is ongoing caution regarding potential changes within Brazil’s policy sphere. Domestically, investors are attentive to upcoming statements from Central Bank President Gabriel Galípolo and a new round of corporate earnings reports. There is awareness that high core inflation and tighter monetary policy guidance could potentially limit further progress.