Ibovespa Rises Over 1% on Lower Bond Yields

The Ibovespa rose over 1% to trade above 183,500 on Monday, tracking a global rally in equities with support from lower bond yields. Benchmark credit costs rose across the curve, taking pressure off banking stocks, which rebounded with minor gains. Bradesco was up 0.3% and Itaú was up 0.5%. Also, WEG rose nearly 5% after announcing construction of a new, battery energy storage systems manufacturing plant. Vale gained more than 2% as iron ore prices edged up, while Petrobras gained with higher oil prices. The utilities sector also traded positive, with Sabesp up 1.6% and Axia gaining over 1%

The Ibovespa edged down to trade below 182,500 on Friday as investors remained pessimistic amid ongoing Middle East tensions. US President Trump's extension of the Iran ultimatum failed to ease oil prices, which rose further, prompting continued inflation concerns and lifting bond yields. This weighed on banking stocks, with Itaú and Bradesco falling over 1% and Banco do Brasil slumping more than 2%. The utilities sector also extended losses, with Axia down 1.5%. Other laggards included WEG and Rede D'Or, both down about 1%. In contrast, Petrobras (+1%) extended gains on higher oil price. In other news, Braskem plunged 10.4% after reporting a R$10.28 billion loss for Q4 2025. Goldman turned cautious on Hapvida (-3.8%), downgrading from Buy to Neutral and lowering its price target. Azul lost over 5% after posting a R$1.6 billion net loss in Q4 2025. Meanwhile, Ambev gained 1% following Thursday's announcement of a $1 billion investment in responsible alcohol consumption initiatives.

The Ibovespa fell 1.45% to close at 182,733 on Thursday as higher than expected mid-month inflation and hardening geopolitical tensions intensified risk aversion. Market sentiment soured after the IPCA-15 showed a 0.44% rise in March driven by a 5.94% jump in airfares and persistent pressure in food and personal expenses. These domestic headwinds collided with a 5% surge in Brent crude as President Trump warned Iran to get serious before it is too late which overshadowed previous hopes for a peace deal. The resulting spike in Treasury yields and stagflation fears pressured the broad market with major banks facing heavy selling as Banco do Brasil shed 3.8% and Banco Santander fell 1.8% while Itaúsa and Bradesco lost over 1%. Utilities and consumer leaders also struggled with Sabesp dropping 2.7% and Natura sliding 5.1%. Conversely Petrobras gained 2.4% as elevated oil prices supported energy producers while Americanas surged 15.3% following judicial recovery developments.