The Ibovespa traded slightly higher around the 137,300 mark on Monday, attempting to recover from a 1% loss on Friday as investors weighed mixed signals from Brazil’s macroeconomic outlook, Moody’s downgrade of the country’s credit outlook, and rising global trade tensions.
According to the latest Focus report from the central bank, markets now expect lower inflation for 2025 (5.46%) and slower GDP growth (2.13%).
Meanwhile, Moody’s revised Brazil’s sovereign credit rating outlook to ‘stable’ from ‘positive’, while reaffirming its ‘Ba1’ rating, citing slower-than-expected progress in tackling fiscal rigidity and building credibility around fiscal policy.
In corporate news, Petrobras shares rose as much as 1.85%.
Gerdau led sectoral performance with a gain of over 5%, buoyed by US President Trump’s announcement to double tariffs on steel and aluminum to 50%.
Elsewhere, Embraer climbed 0.63% amid optimism surrounding a potential aircraft deal with Ethiopian Airlines.
