25.06.202613:40:03UTC+00Ibovespa Rises as Inflation Eases

The Ibovespa rose about 0.5% on Thursday, moving back above the 171,000-point level as investors digested fresh inflation data. Bond yields retreated after mid-June inflation came in below market forecasts, strengthening expectations that price pressures are easing. Further supporting the drop in yields, oil prices gave up all the gains accumulated during the recent Iran-related tensions, as shipping activity through the Strait of Hormuz normalized.

In equities, major banks outperformed, with Itaú, Bradesco, and Banco do Brasil each advancing around 2%. Utilities also traded higher, led by Axia and Sabesp, which climbed nearly 2%. Other notable gainers included WEG and Rede D'Or, both up about 1%, and Embraer, which added roughly 2%.

Investors also evaluated the Brazilian Central Bank’s monetary policy report, which upgraded GDP growth projections and more explicitly highlighted concerns over the government’s fiscal stimulus measures. On the downside, Braskem rose 0.6% despite having filed for emergency creditor protection, as negotiations for an out-of-court resolution to its escalating debt problems encountered setbacks.