FX.co ★ Ibovespa Sets New Record High

The Ibovespa index increased by 0.3% to close at 139,636 on Monday, marking a new record high. This rise occurred as investors reviewed strong economic data, persistent inflation expectations, and optimistic corporate developments. The IBC-Br index for March showed a surprising 0.8% increase month-on-month, driving the growth for the first quarter to 1.3%, thereby highlighting Brazil’s robust economic foundation. Concurrently, the Focus Bulletin made a slight adjustment to its 12-month IPCA forecast, lowering it to 4.91%. However, this remains above the central bank's ceiling of 4.50%, reinforcing the expectation that the Selic rate will stay near its highest level in two decades. The session opened with some pressure following Moody's downgrade of the US sovereign rating to Aa1 on May 16th, which renewed concerns about global economic growth. JBS was a leading performer, climbing 3.4% after JPMorgan reiterated its “overweight” rating and expected strong earnings performance. Additionally, major financial institutions like Santander (up 1.5%), Itaúsa (up 1.3%), and Bradesco (up 0.5%) outpaced others, supported by consistent loan growth prospects and appealing real interest rates.