FX.co ★ Ibovespa Marks Historic High

On Thursday, Brazil's Ibovespa index increased by 0.3%, closing at a new high of 165,568. This upward trend was propelled by strong performances in the financial and utility sectors, which compensated for declines in commodity-related segments. Banking stocks were at the forefront of the rally, buoyed by robust domestic activity data and continued support from the restrictive monetary environment, which helps maintain profit margins. Utilities also saw gains. However, Petrobras's shares dropped by 1.1%, influenced by declining crude oil prices after U.S. President Trump mitigated earlier threats of direct conflict with Iran, thereby easing concerns about supply risks. The steel sector lagged, with companies like CSN, CSN Mineração, and Usiminas experiencing declines exceeding 3% due to disappointing Chinese monetary indicators impacting demand outlooks. Additionally, data from the Brazilian Institute of Geography and Statistics (IBGE) indicated that retail sales grew by a healthy 1.0% month-over-month and 1.3% on an annual basis in November, bolstering confidence in consumer demand, although improvements in consumer-related stocks were restrained by the Central Bank’s stringent monetary policies.