INSUBCONTINENT EXCLUSIVE:
0.02%.This minor drop halted a seven-day rally and reflected a market balancing global volatility with local strengths
Data from the B3 and recent trading show that Brazilian equities have outperformed many peers in 2025, with the Ibovespa up 12.3% since
January.Small-cap stocks gained 8.3% in April, while real estate and consumer-linked shares posted double-digit returns
dollar, its firmest level this year
higher iron ore prices.Ibovespa Holds Steady as Global Volatility and Local Fundamentals Collide
However, cracks in local fundamentals have emerged.Brazilian Markets Signal Caution as Labor WeakensThe unemployment rate rose to 7.0% in
the first quarter, the highest since May 2024, signaling a less resilient labor market amid restrictive borrowing costs and trade
Corporate results also disappointed.WEG shares dropped 11.55% after missing earnings estimates and reporting margin pressure
Major exporters Petrobras and Vale fell 1.54% and 1.82%, respectively, as global commodity prices softened and capital spending
stalled.Winners in the last session included IRB Brasil Resseguros, up 5.31%, CPFL Energia, up 5.22%, and Banco Santander Brasil, up 3.94%
On the losing end, Azul SA Pref plummeted 15.52% to an all-time low, reflecting sector stress and rising costs.Companhia Brasileira De
Distribuicao lost 7.84%, dragged by weak retail sentiment
ETF flows turned positive this week, reversing recent outflows and signaling renewed confidence in Brazilian assets.Daily spot trading
volumes ranged from $12 to $14 billion, above the 30-day average
Technical analysis of the Ibovespa shows the index holding above key moving averages, with support near 134,000 and resistance at
Investors remain alert, weighing attractive valuations and high yields against persistent risks from inflation, fiscal policy, and global
Investors will watch upcoming United States and global data closely, as these will shape the next moves for Brazilian equities.
