Brazil's inflation is easing for a second month and the central bank has resumed cutting the Selic rate, a shift that matters for the real and investors.

Brazil's Ibovespa closed at 174,070 points and the real firmed to 5.1686 per dollar on July 3 as weak factory data fuelled Selic rate-cut bets.

Brazil's inflation is easing for a second month and the central bank has resumed cutting the Selic rate, a shift that matters for the real and investors.