FX.co ★ Ibovespa Struggles for Direction

On Friday, the Ibovespa index lingered just below the breakeven mark, resting at 134,580 points as investors processed a mix of uninspiring corporate earnings, fresh inflation figures, and shifting global trade scenarios. Mining giant Vale experienced a decline of over 2% after announcing a 17% drop in first-quarter profits compared to the previous year. Concurrently, April’s mid-month annual inflation indicator rose to 5.49%, aligning with expectations but remaining high. This bolstered predictions that Copom will continue with further rate hikes and uphold stringent financing conditions. On the international front, uncertainty deepened domestic challenges, as the lack of concrete progress from trade discussions between Washington and Beijing left investors wary and waiting. Even though industrial leader WEG and food producers JBS and BRF saw increases of 1.8% to 3.2%, these gains were eclipsed by lackluster corporate earnings, persistent core inflation, and concerns surrounding trade conflicts. Nonetheless, the Ibovespa was still on track for a weekly increase of over 3.5%.