Ibovespa Rises as Banks and Vale Post Gains

The Ibovespa gained over 0.5% to trade above 173,000 on Tuesday, supported by gains in banking, mining, and utility stocks. Itaú and Bradesco both added 1%, while Auren and Sabesp advanced more than 1.5%. Vale rose over 2% as iron ore prices increased. Investors continued to assess the US proposal to impose an additional 25% tariff on a range of Brazilian imports. Members of President Lula’s administration believe a negotiated solution can be reached before the measure takes effect, with expectations that discussions between the two countries will advance in the coming weeks despite a US report alleging unfair trade practices by Brazil. On the geopolitical front, US President Trump said talks with Iran were ongoing, although tensions between Israel and Lebanon continued to cloud prospects for a broader regional agreement. Petrobras, meanwhile, shed nearly 2% as oil prices pulled back from recent highs.

The Ibovespa lost 0.9% to close at 172,197 on Monday as signs of renewed escalation in the Middle East hurt risk appetite and revived concerns about inflation and interest rates. Although US President Donald Trump said Israel and Hezbollah had agreed to stop attacking each other in Lebanon and that talks with Iran were continuing, fresh violence threatened efforts to end the conflict. Oil prices spiked after reports that US-Iran negotiations had stalled, fueling stagflation fears and pushing bond yields higher. Banks led losses, with Itaú down 1.7%, Bradesco shedding 1.1%, and Itaúsa losing 1.2%. Meanwhile, the S&P Global Brazil Manufacturing PMI fell to 49.1 in May from 52.6 in April, signaling a renewed contraction in factory activity and weighing on industrial stocks such as WEG, which dropped 2.5%. Utilities also pressured the index, with Auren down 2.4%. In contrast, Petrobras gained 0.9%, supported by higher oil prices.

The Ibovespa fell more than 0.5% to trade below 173,000 on Monday as reports that Iran will halt communication with the US cast doubt on a ceasefire renewal. Oil prices rebounded, reviving stagflation concerns and pushing bond yields higher. Financial stocks came under pressure amid expectations of higher borrowing costs and a hawkish monetary outlook, with Santander losing 1% and Bradesco down about 0.5%. Meanwhile, the S&P Global Brazil Manufacturing PMI fell to 49.1 in May from 52.6 in April, signaling a renewed contraction in factory activity and weighing on industrial names such as WEG, which shed nearly 1%. Vale also pressured the index, falling around 1.5% as iron ore prices declined. In contrast, Petrobras gained more than 1%, supported by higher oil prices.