Ibovespa Falls as Stagflation Concerns Weigh

The Ibovespa dropped 1.2% to close at 181,909 on Monday, as rising oil prices and persistent uncertainty surrounding US-Iran negotiations weighed on investor sentiment. Washington rejected Tehran’s latest peace proposal. Markets remained pressured by fears that higher energy costs could intensify global stagflation risks. Financial stocks led the decline, with Bradesco down 2.7% and Itaú falling 2.2%. Utilities also underperformed, with Azzas losing 2.8%. Telefônica Brasil plunged 6.1% after posting net income below market expectations. Other notable laggards included WEG (-2.9%) and Rede D’Or (-6.1%). In contrast, Petrobras gained 1.7%, supported by firmer crude prices ahead of its earnings release later in the day. Vale also advanced 2.4% amid higher iron ore prices.

The Ibovespa gained 0.5% to close at 184,108 on Friday, as investors awaited Iran’s response to a US proposal aimed at ending the conflict in the Middle East. Banks led gains, with Itaú rising 1.1%, while other notable performers included Vale (+0.9%), WEG (+2.7%), and Azzas (+1.1%). Petrobras fell 1.2% as uncertainty over a potential peace deal persisted and clashes near the Strait of Hormuz continued. Elsewhere, Cemig (+0.9%), which is set to release Q1 2026 results later in the day, approved the election of Alexandre Ramos Peixoto as CEO. Banco do Brasil (+0.5%) said it renegotiated more than R$430 million in customer debt over two days. Embraer plunged 11.4% after reporting adjusted net income of R$145.4 million in Q1, down 51.5% from a year earlier. On the data front, revenue in Brazil’s manufacturing industry rose 3.8% in March from February, though growth remained weaker than a year earlier.

The Ibovespa gained nearly 1% to hover near the 185,000 mark on Friday, as investors awaited Iran’s response to a US proposal aimed at ending the conflict in the Middle East. Banks led gains, with Itaú rising nearly 1.5%, while other notable performers included Vale (+1.2%), WEG (+1.9%), Axia (+1.0%), and Rede D’Or. Petrobras edged higher as uncertainty over a potential peace deal persisted and clashes near the Strait of Hormuz continued. Elsewhere, Cemig (+1.1%), which is set to release Q1 2026 results later in the day, approved the election of Alexandre Ramos Peixoto as CEO. Banco do Brasil (+1.6%) said it renegotiated more than R$430 million in customer debt over two days. Embraer (-6.2%) fell after reporting adjusted net income of R$145.4 million in Q1, down 51.5% from a year earlier. On the data front, revenue in Brazil’s manufacturing industry rose 3.8% in March from February, though growth remained slower than a year earlier.