FX.co ★ Ibovespa Hits Record High

On Tuesday, the Ibovespa index rose by 1.8% to a record high of 138,963 points. This surge followed the US–China agreement to pause most tariffs for 90 days, which positively influenced the oil and metals markets. The increase in crude oil prices benefited Petrobras, whose shares rose by 0.6% after the company reported a first-quarter profit of R$35.2 billion and announced interim dividends totaling R$11.7 billion. Meanwhile, iron ore futures in Dalian climbed over 3%, boosting Vale's shares by 1.8% along with other similar companies, driven by renewed demand from China. Domestically, the minutes from the Brazilian Central Bank’s monetary policy meeting confirmed a commitment to maintaining the Selic rate at restrictive levels until inflation forecasts stabilize. President Lula's visit to Beijing concluded with a significant development—President Xi pledged a US$9 billion credit line from China to support Latin American infrastructure projects, raising expectations for increased exports and project financing. Simultaneously, softer-than-expected US Consumer Price Index data for April has led to heightened anticipation of potential interest rate cuts by the Federal Reserve later this year.