Ibovespa Muted as Mid-Month Inflation Tops Forecasts

The Ibovespa traded little changed above the 176,000 mark on Wednesday as investors assessed Brazil’s latest inflation data and monitored developments in the Middle East. Brazil’s mid-month inflation rate rose to 4.64% in May from 4.37% in April, above forecasts of 4.55%, reinforcing expectations that the central bank may keep interest rates elevated for longer. Meanwhile, oil prices moved lower on optimism that the US and Iran could eventually reach a peace agreement despite renewed hostilities and uncertainty surrounding the Strait of Hormuz. Easing energy-driven inflation concerns supported banks, with Itaú and Bradesco rising more than 1.5%. WEG also advanced, while Ambev gained 1% after Brazil’s industrial confidence rebounded to the highest level in one year. Vale added 1% despite lower iron ore prices, while Petrobras lost nearly 2% on falling crude prices.

The Ibovespa lost 0.7% to close at 176,589 on Tuesday after new US attacks on Iran reduced expectations that a peace agreement could be reached soon. The latest strikes renewed uncertainty over when the Strait of Hormuz might reopen, reviving concerns about prolonged inflation and higher-for-longer interest rates, lifting bond yields and pressuring equities. Major banks posted losses, with Itaú down 0.8%, Banco do Brasil shedding 2.4%, and Bradesco losing 1.5%. Utilities also traded lower, with Axia down 2%. Vale fell 0.8% as iron ore prices tumbled. Elsewhere, Rede D'Or gained 1.1% after signing an investment agreement with Atlântica, a group formed by two indirect subsidiaries of Bradesco Saúde, related to the future construction and operation of a hospital in Rio de Janeiro. São Martinho lost 1.5% despite reporting EBITDA above forecasts in Q1 2026.

The Ibovespa edged down to trade below 177,500 on Tuesday after new US attacks on Iran reduced expectations that a peace agreement could be reached soon. The latest strikes renewed uncertainty over when the Strait of Hormuz might reopen, reviving concerns about prolonged inflation and higher-for-longer interest rates. Major banks posted losses, with Santander, Bradesco, and Itaú all falling close to 1%. Utilities also traded lower, with Axia down more than 1%. Elsewhere, Rede D'Or lost over 1% after signing an investment agreement with Atlântica, a group formed by two indirect subsidiaries of Bradesco Saúde, related to the future construction and operation of a hospital in Rio de Janeiro. São Martinho also fell more than 1% despite reporting EBITDA above forecasts in Q1 2026. On the trade front, Japan is set to begin negotiations for an Economic Partnership Agreement with Mercosur.