Ibovespa Falls on Petrobras Results and Inflation Concerns

The Ibovespa fell 0.9% to close at 180,342 on Tuesday, pressured by disappointing Petrobras results and losses in banking stocks. Petrobras dropped 1.6% after reporting a 7.2% annual decline in first-quarter 2026 profit, alongside weaker adjusted EBITDA and lower diesel and gasoline revenues. Major banks also traded lower as Brazil’s inflation rate accelerated in April, driven by higher food and fuel prices and moving closer to the upper limit of the central bank’s target range. The data reinforced concerns that persistent inflationary pressures could slow the pace of future Selic rate cuts. Higher bond yields also fueled worries over borrowing costs and weaker credit demand. Itaú fell 1.1%, Bradesco lost 0.9%, and Itaúsa declined 1.7% despite solid quarterly results. On the upside, Hapvida surged 9.3% after posting earnings above expectations.

The Ibovespa fell near 1% to trade below 181,500 on Tuesday, pressured by underwhelming results from Petrobras. Shares of the oil producer fell about 2% after the company reported a 7.2% annual decline in first-quarter 2026 profit, alongside weaker adjusted EBITDA and lower diesel and gasoline revenues. Major banks also traded lower as Brazil’s inflation rate picked up in April, driven by higher food and fuel prices and moving closer to the upper limit of the central bank’s target range. The data reinforced concerns that persistent inflationary pressures could slow the pace of future Selic rate cuts. Higher bond yields added to worries over borrowing costs and weaker credit demand. Itaú and Bradesco both lost nearly 1%, while Itaúsa fell over 1% despite reporting solid first-quarter results. Vale also declined nearly 2% as iron ore prices weakened amid elevated inventories in China. On the upside, Hapvida surged more than 7% after posting earnings above expectations.

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.