FX.co ★ Ibovespa Aims to Set Fresh Record High

On Monday, the Ibovespa index climbed approximately 0.4%, surpassing the 139,500 level and positioning itself for a potential new record high. This movement occurred as investors assessed various factors, including robust domestic economic performance, ongoing inflationary pressures, and favorable corporate news. The IBC-Br index reported a stronger-than-anticipated rise of 0.8% month-on-month for March, which contributed to a first-quarter growth rate of 1.3%, demonstrating the underlying resilience of Brazil's economy. According to the latest Focus Bulletin, the projected 12-month IPCA inflation rate stands at 4.91%, which remains above the Central Bank of Brazil's 4.50% target ceiling, leading to predictions that the Selic rate will stay at its nearly 20-year high. JBS shares led the rally, gaining nearly 3% as JPMorgan reaffirmed its "overweight" rating and highlighted the company’s robust earnings prospects. Major financial institutions also provided support; Santander, Itaúsa, and Bradesco each saw gains of about 1%. The trading session initially started with caution following Moody's May 16 downgrade of the United States' sovereign credit rating to Aa1, which revived concerns about the global economic outlook.