Ibovespa Falls as Inflation and Political Concerns Weigh

The Ibovespa lost 0.6% to close at 177,284 on Friday, pressured by a negative external backdrop amid fears of rising global inflation, while investors also monitored domestic political developments. Concerns linked to the Middle East conflict pushed global bond yields higher, while oil prices advanced amid the lack of progress toward ending ship attacks and seizures around the Strait of Hormuz, reinforcing stagflation fears. Brazil’s 10-year government bond yield climbed to its highest level in over a year. Locally, sentiment was also weighed by reports linking Senator Flávio Bolsonaro to former Banco Master owner Daniel Vorcaro, who was charged with fraud. Major banks posted losses, with Itaú down 1.7% and Bradesco shedding 1.2%. Eneva fell 3.4% despite strong first-quarter results, while Marfrig closed flat after releasing solid earnings. In contrast, Petrobras gained 1% as higher oil prices supported energy shares.

The Ibovespa lost 1.5% to trade below 176,000 on Friday as investors monitored political fallout from reports linking Senator Flávio Bolsonaro to former Banco Master owner Daniel Vorcaro. Allies of the presidential hopeful sought to downplay the senator’s ties to Vorcaro, who is jailed on multiple criminal charges, after the revelations threatened Bolsonaro’s chances in October’s election. Abroad, uncertainty surrounding a Middle East peace deal and the reopening of the Strait of Hormuz remained in focus. Oil prices rose amid the lack of progress toward ending ship attacks and seizures in the region, reinforcing stagflation concerns. Major banks posted losses, with Itaú and Bradesco both down more than 1%, while utilities also traded lower, led by Sabesp (-2.5%) and Azzas (-2%). Eneva lost nearly 3% despite strong first-quarter results. Vale fell 2.6% and WEG dropped 1.6%, while Petrobras gained nearly 1% on higher oil prices.

The Ibovespa rose 0.7% to close at 178,366 on Thursday in a session driven by corporate earnings. CSN climbed 4.7% after reporting first-quarter adjusted EBITDA of R$2.6 billion, up 5.5% from a year earlier and broadly in line with expectations. Eneva gained 0.6% after posting net income of R$522.7 million, a 36% annual increase. Cosan rose 1.1% and Marfrig added 3.8% ahead of their earnings releases. Meanwhile, Banco do Brasil erased early losses to close flat after cutting its 2026 profit guidance to between R$18 billion and R$22 billion following a more than 50% drop in first-quarter adjusted net income. Braskem fell 0.5% despite reporting net profit of R$1.45 billion, more than double the level seen a year earlier. Investors also continued to assess revelations involving Flávio Bolsonaro and former Banco Master owner Daniel Vorcaro, who was charged with fraud.