Ibovespa Near Record, Petrobras Slides

The Ibovespa rose 0.33% to close at 198,657 on Tuesday, holding near record highs after earlier touching the 199,000 mark and extending its strong upward trend, as optimism over a potential Middle East de-escalation and renewed US-Iran talks continued to support sentiment. Lower oil prices eased inflation and rate concerns, underpinning financial and utility stocks, while pressuring energy shares. Among gainers, Banco do Brasil jumped 2.59%, Eletrobras gained 2.33%, and Rede D'Or advanced 1.49%. Itau and Santander Brasil also posted gains. Vale rose 1.13%. On the downside, Petrobras tumbled 4.28%, leading losses as crude prices declined, while WEG edged lower, extending recent weakness.

The Ibovespa edged up to a record high of about 199,000 on Tuesday as expectations grew for a Middle East war resolution, with US and Iranian negotiating teams potentially resuming talks in Islamabad this week. Oil prices fell on hopes for an end to conflict-driven supply shortages, easing stagflation and rate hike fears, reducing pressure on banking stocks. Itaú and Bradesco each gained nearly 1%. Utilities also posted gains, with Axia up about 1% and Sabesp advancing more than 0.5%. Other notable performers included Embraer (+1.2%) and Rede D'Or (1.4%). In contrast, Petrobras fell over 1% on lower oil prices. Also. WEG lost over 2% on weaker expected Q1 2026 results, scheduled for release later this month.

The Ibovespa edged down to trade below 197,000 on Monday, retreating from Friday's record high as risk aversion rose following failed US-Iran peace talks over the weekend and US Navy preparations to blockade Iranian ports. Oil prices surged, reigniting inflation fears amid supply-shock risks, lifting bond yields and reviving worries over weaker credit demand and potential rate hikes, pressuring banks. Itaú lost more than 1.5%, while Bradesco and Banco do Brasil each shed near 1%. Utilities also posted losses, with Axia and Sabesp both down about 1%. Other laggards included Ambev down 1.2%, Rede D'Or down 1.4%, and WEG down 0.9%. Petrobras, however, gained nearly 2% on surging oil prices.