Ibovespa Inches Up on Easing Inflation

The Ibovespa inched above the 175,000 mark on Friday, as fresh evidence of disinflation strengthened the outlook of lower rates by the BCB. Producer prices rose 1.94% from the previous year in July, slowing from a 2.47% increase in June, and the IGP-M fell from the previous month. Signs of easing inflationary pressures supported credit-sensitive stocks as yields softened. Financials advanced, with Bradesco up 1%, Banco do Brasil gaining more than 1%, and Santander rising nearly 2%. B3 gained nearly 2% after JPMorgan said emerging-market equity funds recorded higher inflows, with Latin America returning to positive territory. Brazil also recovered after four weeks of heavy outflows. Petrobras rose more than 0.5% after Bradesco BBI upgraded the stock to Outperform from Neutral.






