The Ibovespa, Brazils main stock index, rose 0.46% on February 25, closing at 125,983.40 points.
This gain came despite the release of Februarys IPCA-15 inflation preview, which showed a 1.23% increasehigher than Januarys 0.11% but below market expectations of 1.35%.Investors welcomed the slower-than-expected inflation as it reduced fears of more aggressive monetary tightening by Brazils Central Bank.
Azul (AZUL4) led the sessions gains, surging 8.47% to R$4.10, driven by positive adjusted Q4 results despite a reported net loss of R$3.9 billion.Magazine Luiza (MGLU3) and LWSA (LWSA3) followed closely, rising 7.42% and 7.14%, respectively, as investors showed renewed confidence in retail and tech sectors.
On the downside, MRV Engenharia (MRVE3) dropped 4.67% to R$5.10 amid concerns over rising borrowing costs affecting real estate demand.Yduqs (YDUQ3) and Hapvida (HAPV3) also posted significant losses, falling 4.42% and 4.48%, respectively, as weak consumer sentiment weighed on education and healthcare stocks.The Brazilian real remained stable against the United States dollar, closing at R$5.75 after briefly surpassing R$5.80 earlier in the day.
A decline in United States Treasury yields and a weaker dollar globally helped ease pressure on Brazils currency.Brazilian Stocks Edge Higher as Inflation Eases Concerns and Global Markets Waver.
(Photo Internet reproduction)Globally, markets offered mixed signals.
In the United States, the Dow Jones gained 0.37%, while the S-P 500 and Nasdaq fell 0.47% and 1.35%, respectively, as investors awaited Nvidias earnings report amid concerns about artificial intelligence demand slowing down.Market OverviewEuropean markets saw modest gains; Germanys DAX rose 0.6%, while Frances CAC 40 edged lower by 0.08%.
In Asia, geopolitical tensions and rising energy costs kept most indices subdued.Commodities also faced pressure, with crude oil prices falling 2.26% to $69.10 per barrel.
Gold dropped 1.13% to $2,929 per troy ounce.
ETF flows reflected cautious sentiment; Brazil-focused ETFs like BOVA11 saw outflows of R$50 million, while international funds mirrored similar trends with limited inflows.Technically, Ibovespa remains below its 50-day moving average but held its support level near 125,000 points.
The Relative Strength Index at 42 suggests the index is nearing oversold territory, offering potential for recovery if global conditions stabilize.Investors now look ahead to further economic data and geopolitical developments for direction.
They are also keeping an eye on domestic fiscal policies under President Lulas administration.