By Brazil Stock Guide – The Money Times reported that Brazil’s benchmark equity index advanced slightly on Monday, lifted by heavyweight stocks and improved inflation expectations. The Ibovespa (IBOV) added 0.04% to finish at 138,025.17 points, while the real appreciated 0.20%, closing at 5.4147 per dollar.
According to the central bank’s weekly Focus survey, economists cut their 2025 inflation forecast for the 13th straight week, projecting consumer prices (IPCA) to rise 4.86%, down from 4.95% previously. Growth expectations for 2024 were also trimmed to 2.18% from 2.21%. The dollar is now forecast to end 2025 at 5.59 reais, while the Selic rate is seen steady at 15%.
Domestic movers
GPA (PCAR3) led gains, surging more than 13% after the Coelho Diniz family raised its stake to 24.6% and called for an extraordinary shareholders’ meeting to replace the board of directors.
On the downside, logistics operator Rumo (RAIL3) slipped 3% after Citigroup cut its price target to 16.50 reais from 19.50, while maintaining a neutral rating. Analyst Filipe Nielsen said that “supply and demand in the logistics sector have not proven as strong as expected,” adding that freight rates remain under pressure despite a promising outlook for exports this year.
Blue chips also influenced the index. Petrobras (PETR3; PETR4) and Vale (VALE3) advanced alongside stronger commodity prices, while Banco do Brasil (BBAS3) fell amid uncertainty over US sanctions. Local press reported the state-controlled lender may seek support from Brazil’s Attorney General’s Office to counter what it called misleading reports.
Global backdrop
In New York, stocks declined as investors took profits and weighed uncertainty around peace talks between Russia and Ukraine mediated by US President Donald Trump. Intel (INTC) fell after warning that Washington’s newly acquired 10% stake could pose risks to its operations, from limiting overseas sales to restricting access to government subsidies.
Trump also met with South Korean President Lee Jae Myung to discuss a potential trade deal.
On Wall Street, the Dow Jones dropped 0.77% to 45,282.47 points, the S&P 500 slid 0.43% to 6,439.32, and the Nasdaq retreated 0.22% to 21,449.29. In Europe, the Stoxx 600 lost 0.44% to 558.82 points, while in Asia, markets closed broadly higher on bets of US rate cuts and gains in rare earth and property shares. Shanghai’s benchmark surged 1.51% to its highest since 2015, closing at 3,883.56 points.
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