FX.co ★ Brazilian Stocks Attempt to Rebound on Monday

On Monday, the Ibovespa Index experienced a modest rise, reaching approximately 137,300, seeking to bounce back from a 1% decline on Friday. Investors are currently digesting a mix of economic signals from Brazil's macroeconomic landscape, including a Moody's downgrade of the nation’s credit outlook and increasing global trade tensions. As per the central bank's latest Focus report, market expectations now point to a lower inflation rate of 5.46% for 2025 and a reduced GDP growth forecast of 2.13%. Moody’s recently adjusted Brazil’s sovereign credit rating outlook from ‘positive’ to ‘stable’ while maintaining the ‘Ba1’ rating, attributing this change to slower-than-anticipated advancements in overcoming fiscal constraints and establishing fiscal policy credibility. In corporate developments, Petrobras shares climbed by up to 1.85%, while Gerdau posted over a 5% increase, energized by U.S. President Trump's decision to double steel and aluminum tariffs to 50%. Additionally, Embraer shares experienced a 0.63% uptick, driven by optimism regarding a prospective aircraft agreement with Ethiopian Airlines.