Ibovespa Climbs on Lower Oil Prices Amid Middle East Tensions Ease
The Ibovespa stock market index edged up on Monday, trading above 174,500 points. This increase was driven by a pause in the Middle East conflict, which led to lower oil prices and eased inflation concerns.
Crude oil prices fell after the US and Iran halted strikes over the weekend amid renewed diplomatic efforts. President Donald Trump reportedly expressed openness to restarting peace talks.
The decline in oil prices had a positive impact on financials, with Itaú and Bradesco each gaining nearly 1%. Utilities also advanced, led by Axia, which rose more than 2%, while Sabesp gained nearly 1%.
WEG experienced significant growth of about 4% after Bradesco BBI upgraded the stock to Outperform and JPMorgan raised its rating to Overweight. Additionally, WEG secured a contract to supply two generating units for Engie Brasil's Jaguara hydroelectric plant expansion.