Ibovespa Slides as Petrobras Weighs

The Ibovespa fell more than 2.4% to close at 183,218 on Thursday, pressured by Petrobras and major banks. Petrobras dropped 2.2% as oil prices declined on expectations that a potential US–Iran agreement could lead to a gradual reopening of the Strait of Hormuz. Banks also traded lower despite strong earnings reports, with Itaú falling 2.4% despite a 10% annual increase in profit, as concerns over delinquency levels weighed on sentiment, while Bradesco lost 3.9% even after reporting a 16.1% rise in earnings. Elsewhere, Sabesp (-3.7%) and B3 (-3.2%) are set to release earnings later in the day.

The Ibovespa fell more than 1.5% to trade below 186,000 on Thursday, pressured by Petrobras and major banks. Petrobras dropped nearly 2% as oil prices declined on expectations that a potential US–Iran agreement could lead to a gradual reopening of the Strait of Hormuz. Banks also traded lower despite strong earnings reports. Itaú lost 0.5% despite a 10% annual increase in profit, as concerns over delinquency levels weighed on sentiment, while Bradesco dropped more than 3% even after reporting a 16.1% rise in profit. Elsewhere, Sabesp (-1.3%) and B3 (-0.5%) are set to release earnings later in the day, while Vale edged higher on stronger iron ore prices.

The Ibovespa rose nearly 1% to trade above 188,000 on Wednesday, as reports of a potential US–Iran agreement to end the Middle East conflict boosted sentiment. A Pakistani mediator indicated both sides are close to a one-page memorandum, while President Donald Trump said compliance by Iran could end the war and reopen the Strait of Hormuz. Oil prices plunged on expectations of resumed supply, easing inflation concerns. Banks gained, with Itaú up over 1% and Bradesco (+2.0%) advancing ahead of earnings. Itaú posted strong Q1 results. Vale jumped more than 3%, supported by higher iron ore prices as trading resumed in China after the May Day holiday. Elsewhere, Minerva (+1.2%) is set to report results. Oil stocks declined sharply, tracking lower crude prices, with PRIO (-4.2%) leading losses, followed by Petrobras (-2.6%), despite PRIO reporting results above estimates. On the data front, Brazil’s services PMI rose to 52.3 in April from 50.1.