FX.co ★ Ibovespa Starts the Week Strong

The Ibovespa index advanced by 0.7% to settle at 137,322 on Monday, as market participants assessed various economic updates and the progression of trade discussions between Brazil and the United States. Banco do Brasil emerged prominently among financial institutions after its quarterly report and management's remarks alleviated immediate concerns regarding credit. Raízen saw a significant surge of 10.5% following reports of Petrobras' interest, alleviating risks associated with a struggling asset. On the economic front, the IBC-Br, an indicator seen as a GDP proxy, decreased by 0.1% in June following a 0.7% decline in May, bolstering expectations for a more dovish stance from the central bank. Concurrently, Finance Minister Fernando Haddad indicated that trade talks with the US have reached an impasse, describing Washington’s conditions as “constitutionally impossible” for Brazil. He also cautioned that bilateral trade might further diminish, exacerbated by tariffs implemented by US President Trump.