INSUBCONTINENT EXCLUSIVE:
The Brazilian stock market continued its positive momentum on Tuesday, with the Ibovespa index closing at 131,782.45 points, marking a 0.72%
Meanwhile, the Brazilian real strengthened further against the US dollar, with the exchange rate dropping to R$5.65, a 0.63% decline from
Investment Officer at XP Investimentos
(Photo Internet reproduction)Global Market ContextBrazilian markets received support from major global indices:United States: Wall Street
The Dow Jones rose 0.92% to 42,226.84, while the S&P 500 gained 0.78% to 5,719.43, and the Nasdaq climbed 0.53% to 17,903.15.Europe:
European markets closed higher with the Stoxx600 index gaining 0.64%, supported by strong corporate earnings and improved economic sentiment
outperformed as commodity prices rallied
Bank meeting on Wednesday
concerns partially offset gains in local digital payment providers.Top 5 Winners1
citing undervaluation and improved fleet renewal prospects.2
Magazine Luiza (MGLU3): Added 4.8% to R$9.75, continuing to rise on strong Q4 2024 earnings and positive analyst revisions
Embraer (EMBR3): Climbed 4.2% to R$75.88 after announcing a new defense contract worth $1.8 billion, strengthening its diversified revenue
streams beyond commercial aviation.4
CPFL Energia (CPFE3): Rose 3.9% to R$40.68 following regulatory approval for its acquisition of a regional distribution company, expanding
its market presence in southeastern Brazil.5
increased commodity demand.Top 5 Losers1
raised concerns about increased leverage.2
Natura&Co (NTCO3): Dropped 2.8% to R$13.75 as JP Morgan maintained its downgrade from last week, citing ongoing integration challenges and
margin pressure in international operations.3
BRF (BRFS3): Declined 2.5% to R$18.03 amid concerns over the detection of a new avian flu strain in the United States that could impact
Marfrig (MRFG3): Lost 2.3% to R$14.23, affected by both protein sector pressure and profit-taking following recent gains.5
Hapvida (HAPV3): Slipped 2.1% to R$2.10 after reporting higher-than-expected medical loss ratios in its preliminary Q1 results.Trading
Volumes and FlowsTrading volume on B3 reached R$12.7 billion, approximately 23% higher than the 20-day average, indicating strong investor
FlowsThe iShares MSCI Brazil ETF (EWZ) saw inflows of approximately $85 million, its largest daily inflow since January, reflecting renewed
foreign investor interest in Brazilian assets
Local ETFs tracking the Ibovespa also experienced positive flows, with BOVA11 adding R$120 million in new assets.Technical AnalysisFrom a
next resistance level sits at 133,500 points, aligning with the September 2024 highs, while support has formed around 129,000 points
The current price action has established a series of higher lows and higher highs, confirming a bullish trend structure.Looking AheadMarket
While the Fed is expected to maintain rates steady at 4.50%, analysts will scrutinize the accompanying economic projections for signs of
potential policy shifts later this year.The BCB is similarly expected to hold the Selic rate at 13.25%, though market participants will
