Ibovespa Slides as Investors Assess Political Scenario

The Ibovespa gained 1% to trade above the 176,000 mark on Wednesday as progress in US-Iran negotiations helped ease some inflation concerns despite still-elevated bond yields. Pakistan’s interior minister arrived in Tehran as part of mediation efforts after Pakistan hosted peace talks last month and continued conveying messages between both sides. Oil prices retreated, though they remained above $100 per barrel. Financial stocks advanced, with Itaú and Bradesco both rising more than 1%. Utilities also posted gains, with Axia climbing nearly 2%. Vale gained 1% after iron ore prices edged higher in China. Other notable performers included Ambev (+1.1%), Rede D'Or (+2.2%), and Embraer (+1.5%). In contrast, Petrobras fell nearly 1% as oil prices declined.

The Ibovespa fell 1.5% to close at 174,279 on Tuesday as investors reacted to a new election poll and persistent inflation concerns. An Atlas survey for Bloomberg showed Senator Flávio Bolsonaro losing support for October’s presidential election following reports linking him to former banker Daniel Vorcaro, who was charged with fraud. Meanwhile, oil prices remained elevated as markets looked past President Donald Trump’s decision to postpone attacks on Iran, keeping stagflation fears in focus. Brazil’s 10-year bond yield also moved higher, pressuring financial stocks. Banco do Brasil fell 0.93%, Bradesco lost 1.53%, Itaú Unibanco dropped 2.12%, and Santander Brasil slipped 0.37%. B3 plunged 4.96% after appointing Christian Egan as its new CEO, replacing Gilson Finkelsztain. Vale declined 1% on weaker iron ore prices in China, while Petrobras lost 0.75% as oil prices edged lower, though still above $100 per barrel.

The Ibovespa fell nearly 2% to trade below 174,000 on Tuesday as investors reacted to a new election poll. An Atlas survey for Bloomberg showed Senator Flávio Bolsonaro losing support for October’s presidential election following reports linking him to former banker Daniel Vorcaro, who was charged with fraud. Meanwhile, oil prices remained elevated as markets looked past US President Trump's signal of deferred attacks on Iran, keeping stagflation fears in focus. Brazil’s 10-year bond yield also moved higher, pressuring financial stocks. Bradesco, Banco do Brasil, and Itaúsa lost around 1.5%, while Itaú fell 2%. B3 dropped over 3.5% after naming Christian Egan as CEO.