Brazil's Ibovespa edged up 0.1% to close at 188,162 on Monday, as investors cautiously assessed a Pakistan-brokered proposal aimed at ending the five-week conflict in the Middle East. The plan calls for an immediate ceasefire, followed by broad diplomatic negotiations within 20 days. Market sentiment, however, remained restrained after Tehran rejected a plan to temporarily reopen the Strait of Hormuz.
The Brazilian real strengthened to its firmest level against the US dollar since late 2024, supported by elevated commodity prices and expectations of a hawkish domestic interest rate trajectory.
In equities, Petrobras advanced 1.1% as international oil prices moved above $110 per barrel. Aircraft manufacturer Embraer also gained 1.1%, buoyed by favorable analyst assessments of its first-quarter delivery performance. In the banking sector, Banco Bradesco rose 0.7%, while Banco do Brasil added 0.4%, helping to offset a 0.4% decline in mining giant Vale. Consumer staples stocks were also firmer, with Ambev climbing 1.4%.