FX.co ★ Ibovespa Jumps as Lower Oil Prices Ease Inflation Fears

The Ibovespa advanced nearly 2% on Monday, moving back above the 181,000-point mark and mirroring a broad recovery in global markets as declining oil prices helped ease inflation worries. Crude retreated after several tankers successfully transited the Strait of Hormuz, tempering fears of a prolonged energy supply shock and wider inflationary pressures.

Most sectors closed higher, with heavyweight banks and utilities at the forefront of the rally: Itaú gained 2.3% and Axia rose 1.9%. Vale and Petrobras also advanced, adding 1.4% and 1.3%, respectively, despite softer iron ore and oil prices. Among other notable movers, Embraer climbed 1.5% and Rede D’Or increased 1.7%.

On the macroeconomic front, Brazil’s IBC-Br index, a key proxy for GDP, grew 0.8% in January. Meanwhile, the Central Bank’s Focus survey showed a deterioration in inflation and interest-rate expectations: projected inflation for 2026 rose to 4.10% from 3.91%, while the forecast for the Selic policy rate increased to 12.25% from 12.13%.